U.S. and Hong Kong (2002)

U.S. DEPARTMENT OF STATE

Office of the Spokesman

For Immediate Release
2002/930

October, 21, 2002

Media Note

U.S.-Hong Kong Aviation Agreement

Early on October 19, the United States and Hong Kong reached a breakthrough aviation agreement. The agreement caps a three-year effort -- led by the Department of State in cooperation with the Departments of Transportation and Commerce -- to liberalize air links with Hong Kong and to expand opportunities for passenger and cargo airlines. The agreement poses significant benefits for the carriers, travelers, and economies of both sides. The agreement marks a success in the U.S. government's endeavor to open new aviation markets, increase business opportunities, and promote competition.

The agreement benefits U.S. carriers in several ways. In particular, the agreement:

• allows U.S. and Hong Kong airlines to codeshare for the first time;
   
• enables U.S. cargo carriers to include Hong Kong in their global networks;
   
• expands, over a three-year period, the number of weekly flights that U.S. cargo carriers may operate between Hong Kong and third countries from eight to 64;
   
• increases, over a two-year period, the number of weekly flights that U.S. passenger carriers may conduct between Hong Kong and third countries from 21 to 49; and,
   
• includes additional rights for U.S. passenger carriers to fly between Tokyo and Hong Kong and between Osaka and Hong Kong.

The agreement also benefits Hong Kong carriers. Most notably, Hong Kong carriers will receive rights, phased in over two years, to serve 25 U.S. cities on a codeshare basis with U.S. partners. The agreement also will give Hong Kong carriers new rights to operate between the United States and third countries and will eliminate restrictions on the U.S. cities that may serve as gateways for flights between the United States and Hong Kong.

Although the U.S.-Hong Kong aviation agreement is not an Open Skies agreement, it significantly liberalizes our current bilateral aviation relationship. The U.S. Government will continue to seek even more liberal aviation links with Hong Kong.

# # #