Hong Kong's government is facing increased pressure to agree a more liberal air services pact with China, as another locally based group seeks to launch passenger services to the mainland.
Helicopter operator Heli Hong Kong is seeking to expand into the fixed-wing regional jet market and become Hong Kong's fourth passenger airline after Cathay Pacific Airways, Dragonair and CR Airways. The new carrier has been tentatively named Hong Kong Express and it plans to operate regional jets on scheduled flights to secondary cities in China "that cannot be properly served with larger equipment".
Chief executive Andrew Tse says Hong Kong Express hopes to launch services within six to eight months, although the specific launch timing will depend in part on aircraft availability. More importantly, it will depend on Hong Kong and China agreeing a new air services pact enabling more carriers to start operating between the two sides. Dragonair holds all but a handful of the rights available to Hong Kong carriers under the existing accord. It serves around 20 destinations in China with its narrowbody Airbus A320-family aircraft and widebody A330-300s.
Cathay has since late last year also been operating to China, but is only able to offer three weekly passenger flights to Beijing using A330s due to limitations of the air services accord. It wants to add many more services to China.
Talks on a new arrangement between Hong Kong and China have been taking place for some time, but neither side is commenting on progress. Hong Kong is a Chinese Special Administrative Region but it still has responsibility for its own air services regime, and it has often been criticised for being slow to liberalise. It says it is pursuing a progressive liberalisation and many believe its resolve to open up will be tested by the China talks, particularly as Beijing authorities have indicated their willingness to steadily open up to more outside airline competition.
"We are only interested in China," says Tse. "The Hong Kong government has been promoting Hong Kong as a regional aviation hub and a gateway to China. Hong Kong cannot be a gateway to China when the domestic connectivity is so lousy."
Last year another helicopter operator, CR Airways, became Hong Kong's third fixed-wing passenger airline after Cathay and Dragonair and the territory's first regional jet operator. It has a single leased Bombardier CRJ200 that it operates to Siem Reap in Cambodia and to Laoag in the Philippines, although it has said it aims to expand its fleet and offer scheduled flights to China.
NICHOLAS IONIDES SINGAPORE
Source: Airline Business
