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Another major step forward was taken today (Friday) to ensure the smooth continuation of Hong Kong's air services beyond 30 June, with the formal signing of the Hong Kong - Japan Air Services Agreement by the Secretary for Economic Services, Mr Stephen Ip and the Consul-General of Japan, Mr Hideaki Ueda.
The Hong Kong Government's chief air services negotiator, Mr Mike Arnold, said the text of the Agreement took eight years to negotiate. It was concluded and initialled in December 1995, and the Sino-British Joint Liaison Group gave its endorsement in December 1996.
"Since the initialling of the Air Services Agreement, detailed discussions have taken place in both Hong Kong and Tokyo to finalise the air traffic arrangements that will operate under the new Agreement," Mr Arnold said.
"The new arrangements were finally concluded on 26 February this year after two days of talks in Hong Kong with Mr Norifumi Ide of the Japanese Ministry of Transport."
Representatives of Hong Kong's three airlines - Cathay Pacific, Dragonair and Air Hong Kong, the major Japanese airlines (Japan Airlines (JAL), All Nippon Airways (ANA), Japan Air System (JAS) and Nippon Cargo Airlines (NCA), as well as the Japanese Consul-General's Office were also present during the final round of talks.
While regarding the contents of the traffic arrangements was commercially sensitive, Mr Arnold, however, indicated that the new arrangements were modelled very closely on the current UK arrangements concluded in 1986 under the HK/Japan Air Services Agreement in respect of Hong Kong's air services with Japan.
"As the current arrangements had proved to have been very successful in meeting the requirements of the Hong Kong - Japan air services market, both sides in the talks decided to adopt the substance of the 1986 arrangements for the new traffic arrangements under the Hong Kong - Japan Air Services Agreement to ensure a smooth continuation of air services," Mr Arnold said.
Japan is a major market for all three of Hong Kong's airlines - Cathay Pacific, Dragonair and Air Hong Kong. In 1996, the Japanese market represented about 18 per cent of the total revenue earned by the three carriers.
Currently, the airlines of Japan and Hong Kong together carry some 4 million passengers each year, serving nine cities in Japan.
Growth of passengers in 1996 as compared with 1995 was just over 20 per cent. The large number of passengers carried reflects the close business and tourism ties that exist between Japan and Hong Kong.
The Hong Kong - Japan Agreement is the sixteenth air services agreement signed by Hong Kong. The others were signed with the Netherlands, Switzerland, Canada, Brunei, France, New Zealand, Malaysia, Brazil, Sri Lanka, Australia, Germany, Korea, Singapore, Italy and India.
Note to Editors :
A photograph of the formal signing of Hong Kong - Japan Air Services Agreement will be boxed for collection.
February 28, 1997