AirAsia's CEO Comments on Hong Kong Flights
Wednesday August 10, 7:31 am ET

SEPANG, Malaysia (AP) -- Budget carrier AirAsia will not fly to Hong Kong because of high landing costs, the company's chief said, and warned that the airport there risks losing out to rival hubs unless it sheds its "arrogant" attitude and welcomes low-cost airlines like his.

Malaysia-based AirAsia Bhd., the region's biggest no-frills airline by fleet size, also remains years away from operating in India, but plans to launch flights to Cambodia, Laos and Vietnam by mid-2006, chief executive Tony Fernandes said in an interview with The Associated Press Tuesday.

Air Asia currently has routes covering Malaysia, Indonesia, the Philippines, Thailand and Macau, Hong Kong's neighbor. Its joint venture with Thailand's Shin Corp., Thai AirAsia, began flying between Bangkok and Xiamen, China, last year, making it the first foreign low-cost carrier to fly to mainland China.

AirAsia's discussions to gain an entry into Hong Kong ended abruptly last year. Its talks with Hong Kong Airport Authority resumed last month but apparently ended in a deadlock.

Fernandes said AirAsia's chances of flying to Hong Kong are "zero right now."

"I don't think they're serious," he said. "They're not doing anything, they're not trying to understand what we want," he said, adding that Hong Kong's airport demands ground handling service fees that are "many, many more times" what AirAsia pays in Macau.

He declined to provide specific figures.

The Hong Kong Airport Authority, responding to Fernandes' comments, on Wednesday denied that it discriminates against budget airlines, stressing that its airport charges are "transparent and equitable to all."

Seven carriers that operate low-fare flights currently use the Hong Kong airport, the authority said in a statement, adding that it would "continue to work with all potential business partners, be they full service carriers or low-fare airlines."

Fernandes said the airport's refusal to lower costs was "typical of an arrogant, old-fashioned airport," and accused its top management of acting like an "old colonial."

Fernandes said AirAsia is asking for reduced rates because its planes spend relatively little time on the tarmac thanks to quicker turnarounds. The airline is also willing to operate during off-peak hours and use parking bays and check-in counters that are less popular.

Meanwhile, airports in Macau and mainland China, which are a short ferry ride away from Hong Kong, are "hungry for business" and eager to embrace budget carriers, Fernandes said.

"The competition around them is waking up real fast," he said. "You miss the boat and your competitors catch up."

While the airline plans to expand routes in Southeast Asia, it will stay away from India, a massive market that has seen a proliferation of budget carriers despite lack of infrastructure, Fernandes said.

"We're not ready (but) we will be one day," he said. Fernandes confirmed AirAsia will receive its first Airbus A320 planes in December, adding that they would probably be used initially for routes on Malaysia's eastern states on Borneo island.

The airline, which plans to phase out its current fleet of Boeing 737-300s over the next five years, signed a purchase order for 60 Airbus aircraft last March.

Summer wave brings double-digit air traffic growth
AA Press Release

(HONG KONG, 14 August 2005) - Passenger and cargo throughputs, as well as aircraft movements at Hong Kong International Airport (HKIA) in July all recorded double-digit growth when compared with a year ago.

A new monthly record was achieved with passenger traffic rising by 10.3 per cent to 3,790,000. With more people taking their summer holidays, coupled with increased visitor and transfer traffic especially on Mainland China, Taiwan and Australiasian routes, passenger traffic rose to a new height.

Continuous strong demands from the US and Europe contributed to a healthy growth of 12.4 per cent in air cargo tonnage compared to July last year. A total of 289,000 tonnes were handled at the airport last month.

July also set a new monthly record for aircraft movements, largely as a result of the robust passenger growth. There were 22,655 take-offs and landings, up 11.0 per cent over the same month last year.

Over a rolling 12-month period, passenger throughput reached 39,586,000. Cargo tonnage and aircraft movements for the past 12 month amounted to 3,270,000 and 250,355 respectively.

Appointments to the Aviation Development Advisory Committee
Friday, August 19, 2005
Government Press Release

The Government announced today (August 19) the setting up of a new Aviation Development Advisory Committee and the appointment of its members.

With the increasing importance of the aviation industry to the Hong Kong economy and expanded activities in this market, the Government has decided to establish a new Aviation Development Advisory Committee to be chaired by the Secretary for Economic Development and Labour to advise the Government on the full spectrum of aviation-related matters. It will work closely with the local aviation and related industries, the Airport Authority, the Trade Development Council and the Government to develop the aviation sector and further consolidate Hong Kong's status as a centre of international and regional aviation.

This new committee will replace the existing Aviation Advisory Board upon the expiry of the current term of the latter at the end of this month.

"We extend our sincere thanks to the members of the Aviation Advisory Board for their valuable contributions in the past years. Their advice and counsel have greatly assisted the Government in formulating policy and measures to facilitate the significant growth of the local aviation industry. We look forward to the continued support of the industry and members of the new Aviation Development Advisory Committee," a Government spokesman said.

The membership of the Aviation Development Advisory Committee is appended below. The appointments are for a period of two years starting from September 1, 2005.

Chairman

Secretary for Economic Development and Labour

Vice Chairman

Permanent Secretary for Economic Development and Labour (Economic Development)

Members

Mrs Elizabeth Bosher

Mr Philip CHEN Nan-lok, SBS, JP

Mr Moses CHENG Mo-chi, GBS, JP

The Honourable Mrs Selina CHOW LIANG Shuk-yee, GBS, JP

Mr Stanley HUI Hon-chung

Mr Kelvin LEUNG Kai-yuen

Mr Willy LIN Sun-mo, SBS, JP

Prof LIU Pak-wai, SBS

Mr Raymond OR Ching-fai, JP

Mr Joseph TUNG Yao-chung, JP

Chief Executive Officer, Airport Authority (ex officio)

Executive Director, Trade Development Council (ex officio)

Director-General of Civil Aviation (ex officio)

Tuesday August 23, 12:42 PM
HK Dragonair July Passengers Up 10.3% On Holiday Traffic

HONG KONG (Dow Jones)--Hong Kong Dragon Airlines Ltd. said Tuesday its passengers in July increased 10.3% from a year earlier on strong summer holiday traffic.

In July, Dragonair carried 455,468 passengers, up from 412,828 in the same month last year. In June, the airline recorded a 5.2% increase in passenger numbers.

Cargo volumes rose 16% to 32,746 tons in July from 28,195 tons, helped by increased frequencies and new destinations.

"It was a good start to the busy summer holiday season," said Chief Executive Stanley Hui. "Holiday traffic was particularly strong, while the number of individual travelers also increased."

However, the airline reported an "unusually high" number of delays and disruptions to its flights during the month, as many flights to Beijing and eastern China were affected by air traffic control restrictions and bad weather.

Dragonair's Hui warned that rising oil prices continues to undermine the company's positive performance. "(This) is a major concern as it is having a significant impact on our bottom line figures."

Unlisted Dragonair's major shareholders are China National Aviation Co. (1110.HK), which holds a 43.3% stake; CITIC Pacific Ltd. (0267.HK), with 29.4%; Cathay Pacific Airways Ltd. (0293.HK), with 17.8%; and Swire Pacific Ltd. (0019.HK), which holds 7.7%.

DHL stays competitive by increasing capacity 35%
26 August 2005
Thai News Service

DHL, one of the world's leading express and logistics companies, said Wednesday that it has upgraded its uplift capacity on the Hong Kong-Shanghai sector by 35 percent in response to the tremendous growth in demand express services in Asia.

According to Jerry Hsu, president for Greater China and Korea at DHL Express, the five times weekly Hong Kong-Shanghai service, previously operated by a Dragonair A300B4, has been replaced by a Cathay Pacific-operated service with an Air Hong Kong Airbus A300-600GF. The Freighter, with a capacity of 47 tonnes, represents an increase in payload capacity of almost 35 percent, from 35 tonnes previously, he said.

He added that DHL last upgraded the payload capacity on this route in June 2004, 12 months after the service was first launched, in response to increasing demand and surging intra-Asia shipment volumes.

"With the enhanced service, we are now able to offer customers greater uplift for their shipments to and from China, connecting through our Central Asia Hub in Hong Kong," the president said. "We have been experiencing phenomenal growth in China over the last few years and it continues to be the driver of growth for DHL in the Asia and Pacific."

He said over the last four months, DHL has been strengthening its dedicated Asia Pacific air net work. He added that in April, two new direct overnight express services were introduced - between Bejing and Hong Kong, and between Shanghai and the United States.

The new services came shortly after it commenced a four-time weekly dedicated overnight service between Nagoya and Hong Kong in March, he said.

"Surging shipment volumes on the Hong Kong-Shanghai trade lane has necessitated a capacity upgrade on the route. This is to ensure that there is adequate uplift availability in place to support the pace of growth of DHL's business in those markets and across the Asia Pacific," said Ross Allen, senior vice president for aviation at DHL Express Asia Pacific.

"This development also ties in with our long-term aim of having in place a linehaul network that is superior to the competition in terms of reliability, market coverage and cost efficiency."

He further said DHL's dedicated air network in the region connects 27 destinations and is served by more than 20 aircraft in dedicated freighter operations. This allows capital cities and other major business centres to be interconnected through DHL's regional hubs and gateways, providing DHL's customers with overnight services across Asia and the Pacific, he added.

Taiwan gives go-ahead to charter flights from Hong Kong
30 August 2005

Text of report by Elizabeth Hsu, carried in English by Taiwanese Central News Agency website

Taipei, 30 August: Hong Kong Express airline company was given the go-ahead Tuesday [30 August] to operate charter flight services between Hong Kong and Taichung, central Taiwan.

Mainland Affairs Council Minister Joseph Wu made the announcement after inspecting facilities at the Chingchuankang Airport in Taichung with Vice-Minister of Transportation and Communications Chang Chia-juch and Civil Aeronautics Administration Director-General Billy K.C. Chang.

Wu said that in principle, Hong Kong Express can fly the route Wednesday at the earliest if enough passengers sign up for the flight.

Hopefully, more Hong Kong tourists will visit the central area of Taiwan with the new charter flights in place, he explained.

Source: Central News Agency website, Taipei, in English 1025 gmt 30 Aug 05

HK CNAC 1H Net Profit Rises 1.9% To HK$122.9 Mln
30 August 2005
Dow Jones

During the first half, Dragonair, which accounts for the bulk of CNAC's revenue, recorded a 19% rise in passenger revenue to HK$2.73 billion, due to increased capacity to mainland China and a new passenger route to Tokyo, CNAC said. The airline carried 2.4 million passengers in the first half, up 15.5% from the first half of 2004.

But Dragonair's growth was offset by high fuel prices, which rose 47%. Fuel accounted for 23% of Dragonair's total operating costs in the first half, up 6.7 percentage points from the same period last year.

While CNAC didn't specify the profit contributions from Dragonair, Swire Pacific Ltd. (0019.HK), which holds 7.7% of the airline, said in early August that Dragonair recorded a lower first-half profit 'as a result of the adverse impact of increasing fuel prices.'

Operating revenue for Air Macau Co., CNAC's 51%-owned unit, rose 37% to 1.11 billion patacas (US$138.2 million) from 811.8 million patacas, as its passengers rose 24% to 980,535 in the first half.

The expansion in CNAC's first-half net profit was also supported by initial contributions from its China and Hong Kong airline catering businesses, in which it invested in 2004. The catering sector accounted for 13% of CNAC's net profit for the period, and 9.7% of total revenue.

For the second half of 2005, Kong expects the strong passenger trends in Dragonair and Air Macau to continue, 'encouraged by the opening of the Hong Kong Disneyland...and the burgeoning entertainment and gaming industry in Macau.

'Still, the industry will have to face tough realities of high fuel costs throughout 2005,' he said.

Corporate Press Release
CR Airways Launches Direct Flights from Hong Kong to Guilin

(Hong Kong, Saturday, August 20 2005) CR Airways Limited (“CRA” or “the Company”) commences its scheduled services from Hong Kong to Guilin today, and the Company will hold an inaugural ceremony in Guilin. Distinguished guests, such as the officials from the Guangxi Province, Guilin Municipal City, Civil Aviation Authority and Airport Authority as well as business partners have been invited to honour the occasion. They all convey their sincere congratulations to the launch of the new service.

Guilin literally means “the forest of the osmanthus tree”. It is an important cultural city with a history of more than 2000 years. The endless miles of limestone mountains with special shapes and profiles, clear rivers and enchanting caves contribute towards Guilin’s beautiful scenery. The landscape resembles a classical Chinese painting brought to life!

There is a saying – “Guilin’s landscape is one of the best in the world”. The unique and spectacular scenery has drawn admirers from all over the world, including tourists, celebrities and head of states, etc. The continued growth in tourism together with the development in economic conditions in Guilin creates more room for air transportation expansion. Because of this uptrend, commencing 20 of August 2005, CRA will establish air links between Hong Kong and Guilin by operating 5 scheduled flights per week on every Tuesday, Thursday, Friday, Saturday and Sunday. At the same time, CRA will work with the tourist agents to provide competitive packages to facilitate the business and tourist travel between Hong Kong and Guilin.

With unique vision and aspiration, CRA will continue to open up new secondary routes in order to cater to different travel requirements and to facilitate the business and tourism developments between Hong Kong and China.

01 September 2005
DRAGONAIR EXTENDS CO-OPERATION WITH AIR CHINA
Corporate Press Release

(HONG KONG) Extending an already wide-ranging relationship with Air China, Dragonair has announced the signing of an agreement that will see the Mainland carrier wet-lease two of its aircraft.

Dragonair Chief Executive Officer Stanley Hui signed the agreement, which covers the wet-lease of one A330 and one A320 for a period of two years, with Cai Jianjiang, Executive Director and Vice President of Air China, in Beijing last week.

Speaking after the signing ceremony, Mr. Hui said: "We're very pleased to be enhancing our co-operation with Air China in this way. We already codeshare with Air China on seven routes, and this new agreement expands further links between our two airlines."

"We believe such co-operation benefits not only our airlines, but also travellers in and to the Mainland as well."

The wet-lease agreement provides for each aircraft to be staffed by two cockpit crew and one senior purser from Dragonair. The aircraft will be operated on flights from Beijing to several cities, including Shanghai, Hangzhou, Shenzhen and Guangzhou.

Dragonair first entered into a codeshare agreement with Air China in February 2004, covering four cities. Subsequent agreements saw the number of destinations covered rise to the present seven.

Oasis plans London flights to compete with Cathay
2 September 2005
Hong Kong Standard

Oasis Hong Kong Airlines, a long-haul budget carrier, plans to make its maiden flight to London in March to compete with Cathay Pacific Airways.

Oasis, which originally aimed to start operation by year's end, will also launch flights to Germany's Cologne/ Bonn Airport two months after the London service has started, chairman Raymond Lee said.

It will initially lease five Boeing 747-400 aircraft.

The budget airline plans to price the round-trip tickets at under 299 euros (HK$2,836) each, Lee said. Cathay Pacific, which flies to five European cities but not Cologne/Bonn, charges about HK$4,000 to HK$5,000 for round-trip tickets to London.

Oasis, about 60 percent owned by Lee and his wife Priscilla, may become the first long-haul budget carrier when it launches the London flight.

Cologne/Bonn Airport chief executive Michael Garvens said Thursday the airport plans to woo Chinese airlines including budget carrier Okay Airways for long-haul service from Shanghai.

However Oasis needs to clear a regulatory hurdle in Hong Kong before it can launch the London flight.

The Air Transport Licensing Authority in June received two objections against issuing a license to Oasis for flights to destinations, including Bonn/ Cologne, before the airline obtained a certificate to operate in Hong Kong.

The authority hasn't scheduled a hearing on the objections and Oasis still hasn't been granted an air operator's certificate. "We're confident to get the approval since our operations can raise passenger flow,'' Lee said.

Apart from London and Cologne, Oasis has also applied to fly to Milan and Berlin in Europe, as well as Oakland and Chicago in the United States.

Oasis' other founders include Allan Wong, chief executive of the Hong Kong-based consumer electronics manufacturer VTech Holdings, who owns a 15 percent stake.

Manging director Stephen Miller, who founded Hong Kong Dragon Airlines, also holds a small stake in the low- cost carrier.

Hong Kong aviation authority taking liberal approach to airport investment
2 September 2005

According to the General Administration of Civil Aviation (CAAC), although the Hong Kong Airport Authority (HKAA) is forming a new airport leasing company to handle the operation and management of Zhuhai Airport, Zhuhai Airport is still a state-owned airport that is controlled and owned by the Chinese government.

It is revealed that the HKAA is setting up a leasing company with Zhuhai Airport to jointly operate and manage the airport. However, details of this new leasing company are not disclosed.

The HKAA has set a strategy of investing and cooperating with airports within two hours of air traveling distance from Hong Kong. It has five targeted airports - Shenzhen Airport, Zhuhai Airport are two priorities. The HKAA is also negotiating to take an equity stake or form alliance with airports in Ningbo, Shenyang, Dalian, Chengdu, Chongqing, Wuhan and Kunming. The CAAC is said to be taking a more liberal approach to Hong Kong's investment in mainland Chinese airports. All it hopes is for the HKAA to bring in new technology, enhance operation and management level, and enhance the profitability of mainland airports.

Hong Kong Commercial Daily News

First Charter Flight From Hong Kong Arrives in Taichung

TAIPEI, Sept 5 Asia Pulse - The first charter flight operated by Hong Kong-based Express airline between Hong Kong and Taichung, central Taiwan, arrived at the Chingchuankang Airport Saturday evening.

On board were Hsieh Tien-tsi, president of the Express airline, , seven senior executives of the Express and 28 Hong Kong journalists and travel agents.

They were greeted at the airport by Huang Chung-shen, magistrate of the Taichung county, and local business leaders.

Hsieh said he was glad to be allowed to operate charter flights between Hong Kong and Taichung, and hopefully the service will be developed into scheduled flights.

Huang said the arrival of the flight bears witness to the fulfillment of President Chen Shui-bian's campaign promise to upgrade the Chingchuankang Airport to an international airport and it will sure promote the prosperity of central Taiwan.

(CNA)

Hong Kong : British Airways Fined HK$5,000 For Violating Labor Rights
6 September 2005

HONG KONG (AP)--British Airways PLC (BAB) has been fined HK$5,000 (US$641) after pleading guilty of violating the labor rights of the head of its Hong Kong cabin crew union, officials said Tuesday.

In the first successful prosecution of its kind in Hong Kong, the airline pleaded guilty Monday to a charge of preventing or deterring union leader Carol Ng from exercising her labor rights under Hong Kong laws, judiciary spokesman Mackenzie Mak said.

The airline allegedly "informally monitored" Ng and issued written and verbal warnings to her last August in an attempt to deter her from taking part in union activities, according to a Labor Department summons.

British Airways said it accepted the court ruling and felt "comfortable that this low fine reflects the seriousness of the case."

The company added, "It was never our intention to make Ms. Ng feel that she had suffered any detriment because of her associated activities. We are sorry that Ms. Ng felt that she was treated unfairly in this matter."

HK Express Hangzhou flight pricing similar to others
Ta Kung Pao
7 September 2005

Hong Kong Express will open a new route to Hangzhou with three flights a day in October. It has just open a new route to Guangzhou in September. The number of airlines companies that provide air passenger flight service to Hangzhou will increase to four airlines including Air China, China Eastern Airlines, Dragon Air and Hong Kong Express.

Hangzhou ranked the third among all mainland cities in terms of the number of flight going between Hong Kong, following Shanghai and Beijing. According to the survey of Xiaoshan International Airport, the air passenger throughput going to Hong Kong from Hangzhou amounted to 120,000 person-time during the first 7 months in 2005, up 28.7% when compared with the same period last year. The number of flight that goes to Hong Kong from Hangzhou will be increased to 9 flights a day. It is expected that after the opening of Disneyland, the occupancy rate of flights will be increased from 70% to 80%.

According to Xiaoshan International Airport in Zhejiang, the 76-seat aircraft used by Hong Kong Express will be Brazilian-made E170 aircrafts. It is expected that the ticket price will be similar to those offered by other airlines companies.

HK's HACTL says August air cargo volume up 10.7 pct

HONG KONG, Sept 8 (Reuters) - Hong Kong's main air cargo terminal said on Thursday that it handled 10.7 percent more cargo in August than the same month last year as strong growth in the transhipment sector continued.

Hong Kong Air Cargo Terminals Ltd. (HACTL), 25 percent owned by Jardine Matheson Holdings and 20 percent by Swire Pacific Ltd. , handled 204,016 tonnes of cargo in August, it said in a statement.

For the first eight months of the year, it moved a total of 1.54 million tonnes, up 7.1 percent from the same period last year.

Export volume rose 9.2 percent in August to 115,119 tonnes while import volume increased 3.3 percent to 54,615 tonnes.

Growth in the transhipment sector remained strong in August, climbing 31.4 percent from the same month last year to 34,282 tonnes. (US$1=HK$7.8)

Hong Kong Express Launches Flights To Guangzhou

HONG KONG, Sept 9 Asia Pulse - Hong Kong Express (HKE), the fourth Hong Kong-based passenger carrier, starts services at Hong Kong International Airport (HKIA) Thursday with four daily scheduled flights to Guangzhou, the Air Authority of Hong Kong said.

With the launch of HKE, there are now nine flights a day serving the Hong Kong-Guangzhou route.

"We are delighted to see more Hong Kong-based carriers operating services at HKIA, enriching customers' choice and offering additional convenience to travelers," Airport Authority Chief Executive Officer David Pang said.

The Hong Kong-Guangzhou route is one of the fast growing passenger routes at HKIA, with 22 per cent year-on-year growth in passenger traffic last year.

HKE is the sixth new airline to operate from HKIA this year. The carrier provides four daily round trip flights between Hong Kong and Guangzhou using Embraer 170 aircraft.

HAECO H1 net profit up 24 pct

HONG KONG, Aug 9 (Reuters) - Six months ended June 30, 2005

(in million HK$ unless stated)

Shr (H.K. cents) 174.0 vs 139.0
Interim Div (H.K. cents) 50.0 vs 32.0
Exceptional items n/a vs n/a
Net 289 vs 232
Turnover 1,481 vs 997

Company name Hong Kong Aircraft Engineering Co.
Ltd. (HAECO)
Books close September 12-16
Dividend payable September 26

NOTE - Hong Kong Aircraft is 27.45 percent held by Cathay Pacific Airways Ltd and 32.47 percent by Swire Pacific Ltd . It overhauls and maintains commercial aircraft.

The calculation of share earnings is based on the weighted average of 166.32 million shares in issue during the two years.
Outsourcing helps Haeco engineer 25pc profit rise
Russell Barling
10 August 2005
South China Morning Post

Hong Kong Aircraft Engineering Co (Haeco) rewarded shareholders' faith yesterday with a 25 per cent increase in interim earnings to $289 million, from which a 50 cents a share dividend was distributed.

Profit growth was driven partly by Haeco's decision to embrace an industry-wide trend which is seeing more airlines farm out their aircraft maintenance needs to third-party providers.

The Haeco board returned 28.7 per cent of interim net profit, or $83 million, in the form of a 50 cents per share dividend, which is sure to please shareholders who saw their company's shares hit a 19-year high on Wednesday last week of $53.50. They closed down 10 cents yesterday, at $53.20.

"Every year we find a way to improve ourselves, internally. Our rates may be higher than others but our turnaround times and the quality of our work more than compensates for that," chief executive Chan Ping-kit said yesterday. "When we get new customers we keep them."

Group sales, which include contributions from subsidiaries such as Xiamen-based Taeco and Hong Kong Aero Engine Services, and other jointly controlled entities, rose 12 per cent to $4.84 billion, 69 per cent of which was generated in Hong Kong.

Haeco and its sister firms are benefitting from an airline industry shift to outsourcing non-core activities, everything from routine cleaning between flights to annual maintenance checks and inventory management of spare parts.

Haeco's "line maintenance", or routine aircraft cleaning, rate at Chek Lap Kok grew 12 per cent in the first half to 239 aircraft a day. Its product portfolio has grown in the past few years, offering a more comprehensive suite of services and widening its revenue base.

"Originally, airlines tried to keep everything in-house. But today they recognise [maintenance, repair and overall] activities are a cost base, it's a burden to them," Mr Chan said.

"We have also changed over the past three to four years. We are no longer looking purely for ordinary labour activities. We are starting to diversify into inventory management, technical management and engineering design, or higher-value services."

In December, Haeco agreed to manage the inventory for Asiana Airlines' A330 fleet.

It has a second hangar coming online at the airport in 2007. In the interim the company intends to serve demands by increasing overtime for its workforce which group-wide reached 7,800 last year.

September 11, 2005
Government Press Release
2nd consecutive month of record air growth recorded

Another record month was seen in aircraft movements in August with cargo and passenger flights surging 20.2% and 10.3%, the Airport Authority says - the second consecutive month of record growth. Movements also grew 11.5% on the same month last year, to 22,915.

Strong export demand to Europe and North America continued to be the major driving force in air cargo tonnage, with the month's throughput reaching 281,000 tonnes, up 10.4% on last year.

Passenger traffic rose 7.2% to 3.759 million, mainly driven by increased visitor traffic from Taiwan, Southeast Asia and Australasia. There was also growing demand for transfer services on routes between Southeast Asia and North America, Australasia and Europe, as well as Southeast Asia and Europe.

For the past year the airport's passenger throughput totalled 39.841 million, cargo reached 3.299 million tonnes and aircraft movements hit 252,815.

Shenzhen Airlines commences operations at HKIA
AA Press Release

http://www.hongkongairport.com/pr_img/20050910_0803_1.jpghttp://www.hongkongairport.com/pr_img/20050910_0803_2.jpg

(HONG KONG, 10 September 2005) - Shenzhen Airlines launched services at Hong Kong International Airport (HKIA) today with its first flight from Nanning touching down at the airport at 9:25am.

Chief Executive Officer of Airport Authority Hong Kong (AA), Dr David J Pang said that he is delighted to have Shenzhen Airlines joining HKIA, which is also the seventh Mainland carrier operating at the airport. "It marks a major breakthrough for AA in attracting a neighbour airline to start its operation at HKIA. The new service will also boost our status as the preferred gateway of China."

Shenzhen Airlines' Vice General Manager, Mr Liu Hang, said, "The Hong Kong/Nanning service is a major international route for Shenzhen Airlines. We are confident that as an aviation hub Hong Kong will provide us with a strong customer base to grow business."

AA's Commercial Director, Mr Hans Bakker welcomed Shenzhen Airlines at its inaugural ceremony, "This new service enhances the choice offerings for the Mainland market. We are glad to serve as an operational base for the carrier to further develop its network and business."

Shenzhen Airlines operates three flights weekly between Hong Kong and Nanning on Tuesdays, Thursdays and Saturdays, arriving and departing Hong Kong at 9:25am and 10:25am respectively. The carrier is also the seventh new airline to take off from HKIA this year.

Wednesday September 14, 6:50 PM
HK Regulator Allows 10 Airlines To Raise Fuel Surcharges

HONG KONG (Dow Jones)--Hong Kong's Civil Aviation Department said it has allowed 10 airlines to raise their fuel surcharges on passenger flights by up to 50% starting October.

The fuel surcharges will help airlines cope with soaring oil prices, which have boosted their operating expenses.

The 10 airlines got approval to extend and increase passenger fuel surcharges from Oct. 1 to Nov. 30, the Civil Aviation department said on its Web site Wednesday. Six other applications are being reviewed.

Cathay Pacific Airways Ltd. (0293.HK), Hong Kong's dominant carrier, will raise its surcharge by 5.8% for short-haul flights to HK$91, and by 6.3% for long-haul flights to HK$353.

Passengers currently flying with Cathay pay HK$86 for each short-haul route, and HK$332 for long-haul flights.

Cathay's smaller rival Dragonair, which mainly operates routes within the Asia region, will raise its passenger fuel surcharge by 5.8% to HK$91.

Air China Ltd. (0753.HK), China Eastern Airlines Ltd. (0670.HK) and China Southern Airlines Ltd. (1055.HK) will also raise fuel surcharges by 5.8% to HK$91 per flight.

Royal Nepal Airlines got approval to raise its fuel surcharge by 50% to HK$120 per passenger per flight, the biggest increment among all airlines.

The other four airlines that obtained approval to raise fuel surcharges are Air France, Kenya Airways (KAL.NR), Korean Air (003490.SE) and Xiamen Airlines.

Rush for 'speed tours' out of HK
Niki Law
18 September 2005
South China Morning Post

More than a thousand people fought off sleep to catch early morning flights out of Hong Kong yesterday in order to take full advantage of the long Mid-Autumn Festival weekend.

The travellers camped at Chek Lap Kok airport as they waited to board planes that left for Japan and Korea between 1am and 5am.

Tour operators said the "speed tours" - which ranged from $4,000 to $4,800 - were no cheaper than tours leaving the city at normal hours.

However, all available seats on the flights were snapped up as soon as they were made available. Evergloss Tours said it sold 1,000 late-night flight tour tickets - a 15 per cent increase compared with last year - because time is money for most Hong Kong tourists.

"We knew the demand for late-night flights would be big during the Mid-Autumn Festival weekend. Hong Kong people value their time," said the executive director of Evergloss Tours, Steve Huen Kwok-chuen.

"We booked out two JAL flights in advance before we even organised the tours. More than 700 clients booked these extra night flights to Nagoya and Osaka."

Mr Huen said that by leaving in the early hours tourists could enjoy a full day in Japan after they arrived.

The flight to Osaka left Hong Kong at 1.25am while the flight to Nagoya left at 3am.

"By the time they land and get into the city it will be 7am or 8am. They still have a full day ahead of them. If they want to take it easy they can relax and have a soak in the hot springs at the hotel," he said.

"As for Korea, we booked 80 of our clients on the extra seats allocated on the Cathay Pacific flight to Seoul. We have another 200 clients booked on the regular seats." The flight left Hong Kong at 4.50am yesterday. Hong Thai Travel Services said 90 people had booked tours with late-night flights to Japan through them.

"The tours we had on offer are fully booked. People want to take full advantage of the three days. Airlines want to take advantage of the long weekend by opening late-night flights and allocating spots to local tour operators," said general manager Susanna Lai Mei-sze.

"All sorts of people go on these speed tours. They see it as a chance to recharge. In the past it was quite expensive to travel so people went on vacation once a year. Nowadays people leave the country a minimum of twice a year."

Tour operators such as Wing On Travel and Morning Star Travel Service said they also booked a number of people onto late flight tours but were unable to provide exact figures.

22 September 2005
DRAGONAIR LOYALTY CLUB ACHIEVES MILESTONE ON FIFTH ANNIVERSARY
Corporate Press Release

(HONG KONG) Dragonair's loyalty club, The Elite, which marks its fifth anniversary this year, has welcomed its 100,000th Member, a businessman from Shanghai.

"It is five years since The Elite was launched with the aim of rewarding and recognising Dragonair's most frequent travellers, so welcoming our 100,000th Member is a true milestone," said Singmay Chou, General Manager, Marketing.

"The fact that our newest Member is from Shanghai also reflects the development and progress that The Elite and Dragonair have made in the last few years in building our brand and promoting our services."

"As a result, we have sizeable Member communities in Hong Kong, the China Mainland and Taiwan. Membership is particularly high in cities such as Beijing, Shanghai, Taipei and Kaohsiung besides Hong Kong."

Members of The Elite, which has four membership tiers, have access to a range of exclusive benefits and travel-related offers. The membership tier is based on the level of travel during one 12-month period.

"The Elite is a programme designed for the top flight of Dragonair travellers, and has expanded in line with the airline's growth in recent years," said Ms Chou. "We remain committed to offering the best benefits and privileges to Members as it continues to grow."

Benefits include access to Dragonair lounges, advance seat reservation, extra baggage allowances, priority baggage handling and invitations to special Member events, such as auction previews and golf tournaments. In addition, Members receive news and offer updates through an electronic newsletter and a quarterly magazine. Dragonair's website, www.dragonair.com, features a dedicated Member Area.

Four Chinese airlines raise Hong Kong-bound fuel surcharge - report
23 September 2005
Xinhua Financial Network

BEIJING (XFN-ASIA) - China Eastern Airlines Corp Ltd (SHA 600115; HK 0670; NYSE CEA), China Southern Airlines Co Ltd (SHA 600029; HK 1055; ADR ZNH), Air China Ltd (HK 0753) and Xiamen Airlines Co Ltd will increase their fuel surcharges for Hong Kong-bound flights from Oct 1, the Beijing News reported.

The Hong Kong Civil Aviation Department approved the four carriers' application to increase their surcharges by 5.8 pct to 91 hkd between Oct 1 and Nov 30, the newspaper said.

Red tape ties start-up in red ink
Oasis' battle to get off the ground while carrying costs of a full fledged carrier makes a case for regulatory reform
23 September 2005
South China Morning Post

Somewhere in the Arizona desert there are at least five Boeing 747-400 aircraft owned by United Airlines. All are perfectly functional, less than 10 years old and idle purely because their owner has been undergoing Chapter 11 bankruptcy proceedings for almost three years and has mothballed aircraft that used to ply unprofitable routes.

They are also the apple in the eye of local businessman Raymond Lee, who dreams of sprucing them up and putting them back to work for his own Hong Kong-based airline.

The only question is whether Mr Lee, who has built an impressive property portfolio in the US, is willing to pay the price to get the planes out of mothballs and back into the air.

Mr Lee certainly has the money to lease and even ultimately buy the aircraft, should he so choose. That is not the point.

The question he has been asking himself is whether a sensible businessman should have an appetite for risk large enough to face Hong Kong's daunting application process.

The future of Mr Lee's airline, Oasis, is mired in the preliminary stages of what is shaping up to be a lengthy bureaucratic process to get established in Hong Kong.

Tradition has held, with one exception 20 years ago, that a prospective airline must first attain an air operator's certificate (AOC) before it can apply for route licences to serve specific destinations.

The AOC first process is not law, the government will tell you, but it has several precedents.

Two months ago, those precedents appeared to have been abandoned with Oasis' application, which was ostensibly allowed, if not encouraged, to apply for an AOC and route licensing at the same time.

Its rival start-ups found out, objected, and now the whole mess is waiting for a quasi-judicial hearing. Worryingly, for Mr Lee, the process could take years.

Meanwhile, the cash meter is running for Oasis. It has put a deposit on two of the five aforementioned aircraft, which the company figures will cost it more than US$1 million per unit per month, so long as they remain grounded.

Ostensibly, the hearing will be about why the regulatory procedure was changed in Oasis' case when other applicants this year were not offered the new-found fast-track.

The distinction is important because applying in parallel significantly lowers the potential entry level costs. A parallel track allows the prospective airlines' financiers to keep more of their money in their pockets until the regulatory hurdles are cleared for take-off.

The traditional model - AOC first - forces the applicant to absorb the running cost of an airline before they know whether it will even be allowed to fly.

For example, to get an AOC, an applicant must prove it has access to quality aircraft, which at the very least will have to be secured in advance with non-refundable deposits. They must also establish that they have the requisite skilled personnel to operate an airline, which means hiring crew and ground staff.

This is all very sensible stuff. But when it precedes an application for route licences, which can be contested by the incumbent airlines or companies, it opens the door for abuse.

If Oasis or any start-up is a threat to your business, it makes sound business sense to object to the route licences just to see if you can bleed its fiscal resources dry.

There is limited cost for the objector. And there is the chance that, even if the applicant has deep enough pockets to survive the hearing, the objection may be upheld, leaving the applicant with an airline but no place to fly.

For a city that prides itself on the entrepreneurial spirit of its citizens, it is hugely ironic that the established process will ground most high-flyers before they get started.

The government, however, may have already acknowledged that short-coming. "It is entirely possible the government didn't favour Oasis. It may have seen the problems with the old process," a senior aviation expert told Below Deck this week. "But it needs to come out and say that because the perception is otherwise."

There is growing debate about whether the pace of liberalisation for Hong Kong's aviation regime is best serving the public's need for choice, particularly in low-cost airfares.

But enhancing competition and consumer choice is not just about how quickly you allow more foreign airlines to fly here; it is also about how you facilitate the growth of the home carriers, all of them. It has become increasingly obvious the present system needs to be adjusted to lower the barriers to entry.

hkskyline,

Do you think Oasis will eventually overcome all problems they are facing?
Do you think Mr.Lee will eventually abandon applying due to daunting application process?

I think the appearance of Oasis is beneficial for HK on a long term basis in that it can not only enrich customers' choice, but also offer additional convenience.
More HK-based carrier operating service at HK airport can reinforce HK as a international aviation hub without doubt.

Oasis needs to clear a lot of regulatory issues before it can start flying. The long-haul low-cost model has not been tested, and I doubt passengers will put up with a no-frills model for a transcontinental or transpacific flight. That is why Oasis is aiming to fly to cities that are not being served by conventional airlines.

Journal of Commerce Online
September 27, 2005
Gain for Dragonair cargo

Dragonair said it carried 31,856 metric tons of freight in August, up 4.1 percent year-on-year and ahead of the 0.8 percent gain in passenger traffic.

The Hong Kong carrier said cargo volume fell 2.7 percent from July, due mainly to textile trade disputes between China and the European Union and United States. That dispute has since been resolved and the airline foresees a surge of traffic as delayed peak-season shipments get underway.

South China Morning Post
September 27, 2005
August traffic flat as squeeze hits Dragonair
Russell Barling

A traditional peak season revenue boost failed to materialise last month for Hong Kong Dragon Airlines (Dragonair), as leisure traffic fell flat and disputes over Chinese textiles exports limited revenue contributions from cargo.

Dragonair saw 448,000 passengers pay for seats across its regional network last month, up marginally from August last year, even though the carrier had 8.2 per cent more seating on offer. Cargo volumes rose a more modest 4.1 per cent month on month despite an 18 per cent rise in carrying capacity.

"Airlines in this part of the world have to have a good August to have a good second half and they need a good second half to post a good overall result," said a transport analyst for a western investment bank.

"Dragonair had a dismal first half and are now on track for a similar result in the second half."

After seeing higher fuel prices drive its interim earnings down 45 per cent to $ 170 million - based on the unlisted firm's contribution to Swire Pacific's interim profit - Dragonair shelved plans to launch services next month to Sydney. Competition on the route has been fierce since Virgin Atlantic entered the market several months ago.

It also abandoned its service to Phuket - where it had a monopoly on direct flights from Hong Kong - in the wake of the tsunami.

Chief executive Stanley Hui Hon-chung said yesterday that traffic to Southeast Asia had yet to recover from the disaster and that the weather had also disrupted schedules last month.

"The bad weather put off summer travellers and led to many flight cancellations," Mr Hui said in a statement. "Typhoons affected flights to Taiwan and cities on China's coast throughout the month while floods in the south also had an impact."

32 HK-Taipei flights to be canceled or delayed due to typhoon

HONG KONG, Oct. 1 (Xinhua) -- A total of 32 flights between Hong Kong and Taipei are expected to be canceled or delayed on Sunday because of typhoon Longwang.

Taiwan's Eva Air announced on Saturday that it has decided to cancel on Sunday 10 Taipei-Hong Kong flights because of the coming of the typhoon.

The Hong Kong-based Cathay Pacific and another Taiwan airlines will also cancel or delay their 22 Hong Kong-Taipei flights on Sunday for the same reason.

According to reports reaching here from Taipei, the typhoon, which is about 400 kilometer away from Taipei, is expected to land on eastern coast of Taiwan on Sunday.

Heavy rainstorms are expected to fall in most parts of Taiwan since late Saturday night.

DHL plans US$100m expansion
DHL International plans to double its express cargo terminal capacity at Chek Lap Kok with a new US$100 million (HK$780 million) building to deal with the relentless stream of high-value manufactured goods from factories in Guangdong.

Alman Loong
Hong Kong Standard
Tuesday, October 04, 2005

DHL International plans to double its express cargo terminal capacity at Chek Lap Kok with a new US$100 million (HK$780 million) building to deal with the relentless stream of high-value manufactured goods from factories in Guangdong.
DHL, owned by Deutsche Post World Net, plans to build another terminal close to its existing express cargo terminal which was awarded by Airport Authority's franchise in 2002. The original plan was to expand to three terminals over an 11- or 12-year period.

"We're full," said Kelvin Leung, DHL's regional vice president. "We had envisioned a three-phase expansion of the hub, but the second two phases will be rolled into one now."

The existing terminal's peak handling capacity is about 20,000 shipments per hour, with plans to raise that to 45,000 by 2018 once all three phases are completed.

The existing terminal handled about 440 tonnes per day in 2004, with an ultimate capacity of 900 tonnes per day expected by 2014.

The new terminal will be of similar size to the existing 18,200-square-meter terminal, with building costs not expected to exceed US$100 million investment, Leung said.

A ground-breaking ceremony will be held Thursday.

Hong Kong's express and logistics volumes are the fastest-growing segment of the freight industry.

The Airport Authority earlier increased its air cargo forecast for the next five years by 13 percent when the heavy flow of high-value manufactured goods from factories in Guangdong indicated that earlier projections were too conservative. "China will become DHL's biggest and most important market in Asia in the next two to three years. We have seen increased demand for sophisticated logistics service from US and European-based clients with production capacities in China," Jerry Hsu, DHL's regional director for Greater China and Korea, said earlier.

Hong Kong Air Cargo Terminals Ltd, another air cargo terminal operator that controls about 80 percent of air freight movement at Chek Lap Kok, said it welcomed DHL's expansion. "We are not competing with DHL as we do not operate express cargo," HACTL's spokeswoman Cindy Cheung said.

FedEx Corp and United Parcel Service - two of the other top global air express companies - announced in July that they would establish Asia Pacific transport hubs in Guangzhou and Shanghai.

FedEx is expected to invest US$150 million, while UPS is pouring US$500 million into establishing international air hubs in Asia.

16 people fined for smoking on jetliners
Patsy Moy
04 October 2005
South China Morning Post

Sixteen passengers have been convicted for ignoring the smoking ban on commercial aircraft, according to a Legislative Council document released yesterday.

The offenders were fined between $500 and $3,000 by the court between 2002 and the first quarter of this year. All the cases involved Cathay Pacific. The maximum penalty for smoking on an aircraft is $5,000.

In the Health, Welfare and Food Bureau paper submitted to the Bills Committee yesterday, Cathay Pacific and Dragonair said their staff did not experience difficulties in enforcing the ban except when passengers smoked in the toilet.

"Evidence such as cigarette stubs were already flushed down the toilet," the document read.

Deputy Secretary for Health, Welfare and Food Ingrid Yeung Ho Poi-yan told yesterday's committee meeting the government planned to help cigarette and news stands find new advertisers when the ban on tobacco advertising comes into effect as part of the anti-smoking law, should the bill pass.

Mrs Yeung said some of the 723 stands earned $100 to $6,000 a month from tobacco advertising, but she added that the government had no plan to offer any compensation for the loss of income.

However, legislators were split over the government's plan to ban tobacco advertisements at the stands.

Legislator Albert Chan Wai-yip accused the government of ignoring the livelihood of the stand owners. "Most stands already face very fierce competition from the convenience store chains. Many owners are elderly or disabled people," he said.

^^

hkskyline, that's so much for all these news updates. It may seem like no one's responding to them but they are very, very awesome reads.

DHL plans US$100m expansion
DHL International plans to double its express cargo terminal capacity at Chek Lap Kok with a new US$100 million (HK$780 million) building to deal with the relentless stream of high-value manufactured goods from factories in Guangdong.

Alman Loong
Hong Kong Standard
Tuesday, October 04, 2005

DHL International plans to double its express cargo terminal capacity at Chek Lap Kok with a new US$100 million (HK$780 million) building to deal with the relentless stream of high-value manufactured goods from factories in Guangdong.
DHL, owned by Deutsche Post World Net, plans to build another terminal close to its existing express cargo terminal which was awarded by Airport Authority's franchise in 2002. The original plan was to expand to three terminals over an 11- or 12-year period.

"We're full," said Kelvin Leung, DHL's regional vice president. "We had envisioned a three-phase expansion of the hub, but the second two phases will be rolled into one now."

The existing terminal's peak handling capacity is about 20,000 shipments per hour, with plans to raise that to 45,000 by 2018 once all three phases are completed.

The existing terminal handled about 440 tonnes per day in 2004, with an ultimate capacity of 900 tonnes per day expected by 2014.

The new terminal will be of similar size to the existing 18,200-square-meter terminal, with building costs not expected to exceed US$100 million investment, Leung said.

A ground-breaking ceremony will be held Thursday.

Hong Kong's express and logistics volumes are the fastest-growing segment of the freight industry.

The Airport Authority earlier increased its air cargo forecast for the next five years by 13 percent when the heavy flow of high-value manufactured goods from factories in Guangdong indicated that earlier projections were too conservative. "China will become DHL's biggest and most important market in Asia in the next two to three years. We have seen increased demand for sophisticated logistics service from US and European-based clients with production capacities in China," Jerry Hsu, DHL's regional director for Greater China and Korea, said earlier.

Hong Kong Air Cargo Terminals Ltd, another air cargo terminal operator that controls about 80 percent of air freight movement at Chek Lap Kok, said it welcomed DHL's expansion. "We are not competing with DHL as we do not operate express cargo," HACTL's spokeswoman Cindy Cheung said.

FedEx Corp and United Parcel Service - two of the other top global air express companies - announced in July that they would establish Asia Pacific transport hubs in Guangzhou and Shanghai.

FedEx is expected to invest US$150 million, while UPS is pouring US$500 million into establishing international air hubs in Asia.
wow, so many new projects in HKIA.

No smooth ride for proposed new heliport
Council rumblings over impact assessment report; likely noise levels may be higher than estimated
6 October 2005
South China Morning Post

District councillors yesterday urged the Environmental Protection Department to reject an environment impact assessment on the proposed Sheung Wan heliport expansion, saying the estimate of the likely noise level was too low.

The Democratic Party councillors are also worried about the effect on 10,000 nearby residents after nightly landings on the proposed pad - on the roof of the Hong Kong-Macau Ferry pier near the Shun Tak Centre - are more than doubled.

The Civil Aviation Department submitted the assessment report, completed by Maunsell Environmental Management Consultants in August, to the councillors this week. Approval from the Environmental Protection Department is needed before the project can go ahead in the middle of next year.

The government plans to build a 1,764-square-metre helipad adjacent to the current 885-square-metre helipad, which caters for helicopters travelling between Hong Kong and Macau.

It says the new helipad will be able to meet the demand for helicopter trips between Hong Kong and Macau to 2015.

The assessment found that the average noise level between 7pm and 11pm would be about 65 decibels and the maximum noise level between 8am and 7pm would be 85 decibels.

The consultant said in the report that the estimated noise levels comply with the current legislation.

But Central and Western District councillor Kam Nai-wai said the estimated average noise level at night could lead to a wrong conclusion about the impact on local residents.

"What we should look at is the maximum noise level, which is the sound heard when a helicopter flies above the residents," he said.

Mr Kam said an accurate estimate was necessary to assess the new helipad's impact on residents.

The report estimates that there will be 34 night flights on the two helipads - more than double the current 16 - between 7pm and 11pm.

Mr Kam said local residents would not be able to bear 34 flights above them between 7pm and 11pm - equivalent to a helicopter trip every seven to eight minutes - while they were trying to rest.

The councillors also suggested the helicopters be replaced with machines having lower noise levels and restrict night flights.

The Civil Aviation Department told the district council it would closely monitor the noise level of the new helipad. The maximum number of trips is 206 a day for the two proposed helipads, compared with 108 for the existing one.

New airbridge opens up gateway to opportunities
(HONG KONG, 6 October 2005) - Some 160 passengers flying with Hangzhou-bound KA 620 today were the first group using a new airbridge specially designed for small aircraft operating at Hong Kong International Airport (HKIA).

Airport Authority Hong Kong (AA)'s Chief Executive Officer, Dr David J Pang, joined Dragonair's Chief Executive Officer and Director, Mr Stanley Hui, and Chairman of the Airline Operators Committee, Mr Victor Ho at today's inauguration ceremony, which marked the opening of the $39 million facility.

Construction work commenced in October 2004, and the facility was completed within a year. The glass panels on both sides of the airbridge give passengers a new airport experience, offering them a pleasant view of the apron while embarking or disembarking.

The 24-metre long airbridge is designed to accommodate A319, A320, A321 and B737, which altogether constitute about 25 per cent of all passenger aircraft at HKIA mainly serving Mainland cities and Asian destinations.

Dr Pang said, "China's burgeoning economy has boosted demand for air traffic between Hong Kong and the Mainland. To capture the enormous growth opportunities presented to Hong Kong, we have been working closely with our business partners in further enhancing our customer services as well as airport facilities."

"The construction of the new airbridge represents our commitment to continuously enhancing our infrastructure, which ties in with our airbridge strategy of linking up Hong Kong with the robust economic region of the Yangtze River Delta with more destinations and more flights."

Mr Stanley Hui of Dragonair said, "As a Hong Kong-based airline, we will continue to work with the Airport Authority and other industry partners to further enhance the competitiveness of Hong Kong and its position as an international aviation centre."

On other growth projects at HKIA, Dr Pang said there were plans to construct a total of five new parking stands in the vicinity of the Backup Control Tower targeted for completion by April 2006. These stands are specially designed to facilitate direct taxi-in and taxi-out for quick turnaround of small aircraft. Enhancement works are also being carried out on the airfield to prepare for the arrival of A380, the largest passenger airliner, by March 2006.

Early this year, eight new airlines - Ocean Airlines, Thai Sky, Bangkok Airways, Sichuan Airlines, Shanghai Airlines, Palau Asia Pacific, Hong Kong Express and Shenzhen Airlines - have joined HKIA's extensive aviation network. Two new carriers, Siem Reap Airways and Shandong Airlines, will be added to travellers' choice of carriers by the end of this year.


Media Enquiry Hotline: (852) 2188 7152
Airport Authority Website: http://www.hongkongairport.com

Cargo handling set for $300m upgrade
Hong Kong Airport Authority, the government-owned unit which runs the airport, plans to spend HK$300 million to add another 10 cargo stands by 2007 to capture the growing cargo market.

Alman Loong
Hong Kong Standard
Friday, October 07, 2005

Hong Kong Airport Authority, the government-owned unit which runs the airport, plans to spend HK$300 million to add another 10 cargo stands by 2007 to capture the growing cargo market.

"We are still optimistic on the cargo market outlook as there has been an 11 percent growth in the first eight months," Secretary for Economic Development and Labour Stephen Ip said Thursday.

Hong Kong International Airport handled more than 3.1 million tonnes in 2004, up 15 percent over the same period in 2003.

Ip said the government expects full- year traffic volume to meet the 3.4 million tonnes target, for growth of 9.6 percent.

To handle rising traffic volumes, HKAA has built four cargo stands since June, taking the total to 25. The authority decided to add 10 more cargo stands by 2007.

Of the total cargo traffic volume in the first eight months this year, 300,000 tonnes was express cargo, up 25 percent from the same period last year, HKAA chief executive David Pang said.

"Express cargo continues to be the fastest-growing segment of our aviation logistics business," Pang said.

The fast-growing express cargo market has prompted DHL to announce a US$110 million (HK$858 million) investment to double the capacity of its express cargo terminal at Hong Kong's airport. When completed in 2007, it will be the first large-scale automated express cargo hub in Asia-Pacific, DHL said. "We're expanding six years ahead of schedule to grow our market share and maintain our position in the region," said Scott Price, Asia-Pacific chief executive for DHL Express. "Hong Kong is a mature market while China is still developing."

More than 70 percent of DHL's China inbound and outbound shipments are routed through Hong Kong. In 2004, the hub handled more than 22 million shipments, over 60 percent of which were intra-Asia shipments. The hub is expected to handle more than 30 million shipments by the end of 2005.

The new terminal will increase the DHL hub's parcel-sorting capacity to 35,000 pieces per hour from 20,000, and its document-handling capacity from 15,000 per hour to 40,000.

Meanwhile, Asia Airfreight Terminal, based in Singapore, said it is investing HK$1.75 billion to triple its air cargo handling capacity in Hong Kong to over 1.5 million tonnes per year by the end of 2006.

HKIA welcomes DHL Central Asia SuperHub

http://www.hongkongairport.com/eng/sa/dhl_center.html

Oasis moves closer to take-off as rival shelves objection - HKEA backs down to stem 'drain on resources' ahead of spring launch
Russell Barling
12 October 2005
South China Morning Post

Hong Kong Eagle Aviation (HKEA) has dropped its objection to a licensing application from Oasis Hong Kong Airlines, bringing the budget start-up carrier one step closer to a possible launch date early next year.

HKEA, a shell company created by Macau Eagle Aviation, the parent of Macau's low-cost start-up airline Wow!Macau, joined forces in June with local carrier CR Airways to lodge an objection to Oasis' application for route rights to Europe and the United States, citing procedural abnormalities.

But HKEA's management has backed down, leaving CR Airways as the sole objector. A hearing has been scheduled for November 5.

"[The objection] was becoming a drain on our management resources, especially as we are preparing to launch services from Macau in the late spring," a Macau Eagle spokesman said from the former Portuguese colony yesterday.

The two airlines are racing to beat each other to market with similar low-cost products in Hong Kong and Macau.

Both intend to deviate from the traditional low-cost operating model by offering long-haul services to European markets such as Milan.

They also look to widen their potential revenue stream by catering to air freight, a sector other budget airlines such as Ryanair and Air Asia have ignored.

The airlines had objected to Oasis' request for route rights - it wants to fly to Milan, London (Stansted), Cologne, Chicago and Oakland - because they felt the application process had been fast-tracked in Oasis' case.

The traditional process requested airlines to obtain an air operator's certificate before applying for route licences whereas Oasis was allowed to apply for both in parallel.

At an Open Skies seminar hosted by the South China Morning Post last week, Oasis chief executive Stephen Miller said he thought the objections were frivolous.

"I have no quibble with the parallel process. It seems to be very fair," Mr Miller told the delegates.

"The only caveat {hellip} is that there are objectors to this process. Anybody, any man and his dog [can object]. One of the companies that has objected to our route application is a $2 Hong Kong company [registered] in Western Samoa.

"We should have a more rigid examination of who the objector is and the merits of his objection."

Oasis had to delay a launch planned for the end of this year as the objection process runs its course.

Wow!Macau, to be renamed after objections from Lufthansa's WOW cargo alliance, is fine-tuning its sub-concession to operate from across the border.

China Southern Airlines offers promotional fare for Hong Kong to Beijing travel
Airline Industry Information
October 7, 2005

China Southern Airlines (NYSE:ZNH) has announced a new "Fly To Beijing In Style" Business Class promotion from Hong Kong to Beijing, China.

The airline said it would operate the service with its new Airbus A330 aircraft, featuring the carrier's new flat-bed seats.

The promotional fare is HKD5,680 per person and the offer is reportedly valid through to 31 December 2005, including one free night on the Executive Floor of the Beijing Hilton or Marriott Beijing Hotel West.

Airline Industry Information
October 7, 2005
Continental Micronesia to reinstate Guam-Hong Kong service

Continental Airlines has said that Continental Micronesia will reinstate service from Guam to Hong Kong on 7 November.

The airline's Micronesia division serves Hong Kong via a stop in Saipan, Pacific Business News reported.

Continental said that the new service will allow travellers from Hong Kong to transfer for flights to Honolulu, Hawaii after a one-hour layover in Guam.

12 October 2005
Corporate Press Release

DRAGONAIR WELCOMES THE EXTENSION OF THE INDIVIDUAL TRAVEL SCHEME

(HONG KONG) Dragonair welcomes the announcement in today's Chief Executive's Policy Address that the Individual Travel Scheme will be extended to four more China Mainland cities namely Chengdu, Jinan, Shenyang and Dalian from November 1, 2005.

Dragonair's CEO Stanley Hui said, "We believe the extension of the Scheme will provide a boost to the China Mainland's outbound travel market and will benefit related sectors in Hong Kong, including the travel, hotel and retail sectors."

"As the China-expert, Dragonair is well-positioned to take advantage of this development and to meet the rising demand for travel from these cities. We will continue to explore the resulting opportunities in terms of new destinations and increased frequencies," Hui added.

Dragonair is now offering 14 flights per week to Chengdu and two flights per week to Dalian.

Cargo Traffic Up at Hong Kong Airport
Sunday October 16, 2:17 am ET
Cargo Traffic Increases 9.2 Percent in Sept. at Hong Kong Airport, an All-Time Monthly Record

HONG KONG (AP) -- Cargo traffic at the Hong Kong International Airport rose 9.2 percent to 304,000 metric tons (334,400 short tons) in September from a year earlier, reaching an all-time monthly record, the airport said Sunday.
In the first six months of the fiscal year ended September, the airport recorded 11.3 percent on-year growth in cargo traffic. It handled more than 1.7 million metric tons (1.87 million short tons) of cargo during the period.

Passenger traffic in September also grew, jumping 8.5 percent to 3.3 million passengers from the same month last year, the airport said.

The national "Golden Week" holiday in mainland China contributed significantly to the passenger growth and increased aircraft movement, with 812 flights recorded on Sept. 30, the day before the weeklong holiday began.

20 October 2005
Dragonair : DOUBLE-DIGIT GROWTH POSTED IN FIRST NINE MONTHS OF YEAR
Press Release

(HONG KONG) Dragonair flew 3,692,930 passengers in the first three quarters of the year, a jump of 11% over the same period last year, while freight shipments climbed 15.8% to 278,301 tonnes in the first nine months of the year when compared with January-September 2004.

"This is very healthy growth given the general background against which we have been operating," said CEO Stanley Hui. "We are facing greater competition, higher operating costs mainly due to oil prices and a recent period of bad weather, so the performance to date is very pleasing.

"Many of those factors will persist into the fourth quarter - especially the pressure from high oil prices, which appear to be having a dampening effect on travel - but we remain cautiously optimistic about the coming months and the year as a whole in terms of headline numbers."

Meanwhile, the number of passengers flying in September rose by a slight 0.3% year-on-year to 416,417. The month-on-month figure registered a decline of 7.1% due to the larger volume of summer holiday traffic in August.

"Business traveller numbers were strong in September, but group travel declined significantly, as expected following the busier summer holiday season," said Mr. Hui. "Overall market growth appears to have levelled off for now. And, in fact, the tour group market to the Mainland and to Thailand this summer was not as strong as expected."

Cargo bounced back in September, posting a 6.0% rise month-on-month to 33,769 tonnes, while year-on-year growth was basically unchanged, at -0.2%.

"September is traditionally a better month than August for freight, and so it proved, although a few technical issues with aircraft during the month meant the level of shipments we carried was not a true reflection of the demand in the market for our services," Mr. Hui said.

"Despite this, our New York route did particularly well, driven by demand for Asian exports in the US market.

"We remain optimistic about the coming months, which are usually a busy time for air shipments."

Cebu Pacific opens first regional office in Hong Kong
Government Press Release
Thursday, October 20, 2005

http://gia.info.gov.hk/general/200510/20/P200510200183_photo_268518.JPG

Philippines carrier Cebu Pacific (CEB) celebrated the official opening of its first regional office in Hong Kong.

Located in Tsimshatsui East, the regional office is part of CEB's expansion. The Hong Kong centre will facilitate ticket sales and reservations and function as customer support. It also will be used to boost the airline's promotion and marketing operations in Hong Kong, Mainland China, Macao, Taiwan and Japan.

The General Manager of CEB, Mr Danilo Mojica, said, "With the establishment of our new Hong Kong office, it will become more convenient for travellers to make ticket purchases and reservations. We are confident that our expansion in Hong Kong will help strengthen Cebu Pacific's presence in the region."

Joining Mr Mojica and other officiating guests at the opening ceremony, the Head of Transportation at Invest Hong Kong, Mr Benjamin Wong, welcomed the airline's decision to use Hong Kong as its regional base.

He said, "We are particularly pleased to see CEB choosing Hong Kong as the location for its first office outside the Philippines. We are confident that CEB will benefit from Hong Kong's position as Asia's leading regional aviation hub, supported by well-established infrastructure, a first-rate international airport and an experienced and talented workforce. Hong Kong's central location, strong consumption power and reliable communications make it the preferred location for airlines and travel services companies like CEB to operate in. We wish the airline all the best in its future development in Hong Kong and in the region."

Launched in 1996, CEB is the airline unit of JG Summit Holdings Inc. It is the second largest airline in the Philippines, with a fleet of ten DC9s, two B757s, two A320s and one A319 aircraft and a 30% market share on the routes that it flies. The airline plans to have 14 new aircraft by early 2007. For more information about CEB, please visit the website at www.cebupacificair.com.

Invest Hong Kong is the Hong Kong Government department charged with encouraging and facilitating inward investment into the city by providing all the support needed to establish a business presence here. For more information, please visit the website at www.investhk.gov.hk.

Hong Kong Express CR Airways continue to expand coverage
17 October 2005

http://www.crairways.com/images/top/logo-cr.gif

Following the launch of scheduled routes going between Hong Kong and Guangzhou, as well as Hong Kong and Hangzhou in early September and early October 2005 respectively, Hong Kong Express is going to advance its launch of Ningbo route in December 2005.

Andrew Tse, CEO at Hong Kong Express expressed that the original planning was to launch Nanjin routes in December this year, while Chongqing and Ningbo routes would be launched next year. However, as the number of passengers going to Ningbo during winter is higher than that to Nanjin, the company has decided to adjust the arrangement.

In order to expand source of clients and enhance competitiveness, Hong Kong Express has made interline agreement with over 10 airlines companies to transfer clients to other airlines companies for routes that are not provided.

On the other hand, CR Airways will also launch a new route between Hong Kong and Kunming starting from 19 October 2005. It plans to provide four flights a week. It is the sixth mainland routes opened by CR Airways this year. Price of return ticket and one-way ticket of this route is HK$3,320 and HK$1,760 respectively.

Wen Wei Po

CR Airways launches its sixth route stopping at Kunming
22 October 2005

CR Airways starts launching a new route going between Hong Kong and Kunming. The new route will provide four flights a week. Together with routes going to Nanning, Jinan, Haikou, Sanya and Guilin, CR Airways is already flying to six different destinations in China this year.

The company is actively talking to a number of travel agencies to launch tour packages. It plans to organize traveling tours to attract more passengers from Hong Kong and mainland China. CR Airways now possesses three aircrafts one of which is a 70-seats aircraft newly purchased.

At present, Hong Kong Dragon Airlines (Dragonair), China Eastern Airlines and China Southern Airlines have also launched routes going between Hong Kong and Kunming.

Ta Kung Pao

Mandarin Airlines Launches Charter Flights to Hong Kong

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TAIPEI, Oct. 20 Asia Pulse - Mandarin Airlines is set to ply the first charter flight from Taichung in central Taiwan to Hong Kong Thursday, with the plane 70 per cent full, a spokesman for the aviation company said Wednesday.

About 70 passengers, mainly members of a tour group organized by a tourist agency based in Taichung, will board the plane, which is slated to depart Chingchuankang Airport in Taichung at 5:00 p.m. and to return from Hong Kong empty later the same day, the spokesman said.

Mandarin Airlines was granted the approval late Tuesday to run two charter flights to Hong Kong by the civil aviation authorities in the territory, with the second flight set for Sunday, which will bring back the tour group to Taichung, he said.

The approval came at the last minute and was a surprise to Mandarin Airlines, which filed an application with Hong Kong a few months ago, leaving very little time for the Taipei-based carrier to lure a larger number of passengers, he noted, pointing out that the company might not apply for flights next month during the low season.

Meanwhile, UNI Airways has yet to receive Hong Kong's permission to operate Taichung-Hong Kong charter flights Oct. 27 and Oct. 30.

Although Chingchuankang Airport is dubbed as an international airport by Taiwan's civil aviation authorities, it can only accommodate short-range charter flights to Hong Kong, South Korea and Japan due to its limited facilities.

(CNA)

Customs puts passengers in the clear
21 October 2005
South China Morning Post

Customs officials will introduce a new system to cut the time it takes passengers to clear immigration.

The news came yesterday as the government pledged to find new flight paths and ways to clear the clogged skies around Hong Kong.

Officials told Legco's economic services panel that the congestion crisis in the skies was caused by traffic through Chek Lap Kok growing 7.2 per cent a year since it opened in 1998, more than double the expected growth.

Secretary for Economic Development and Labour Stephen Ip Shu-kwan said the issue was complex and authorities were looking at ways to introduce more flight paths into the already crowded skies over the mainland.

Mr Ip said discussions would have to be held with the four other airports within a 100km radius of Hong Kong - Zhuhai, Macau, Shenzhen and Guangzhou - on how to increase space for flights.

"Safety is not a problem, it's about how we use our limited capacity at the airport and in the air to handle more flights," he said.

The Civil Aviation Department was working on more efficient air-traffic control because the congestion was now hurting business, with international courier company FedEx recently relocating to the mainland. The government was also exploring ways of allowing freight and passengers entering Hong Kong by ferry to be cleared before going to the airport.

Customs and Excise head of Control Points Command Ko Chi-lok said a new customs system dividing passengers through "red" - goods to declare - and "green" - no goods to declare - zones would come into effect from November 1. Mr Ko said the system would shorten the time taken by passengers to clear customs, limit smuggling and align with international practice.

Customs officers would monitor all arrivals from a control tower and pick out people acting suspiciously for searches

Mr Ko would not comment yesterday on whether the new measures were introduced to combat a surge in attempts to bring illegal goods into Hong Kong. "We are constantly moving to improve passenger queues. This system is also in line with international practice," he said.

HK Dragonair Flight Lands Safely With Windshield Crack
23 October 2005

HONG KONG (AP)--A Dragonair flight from northeast China landed safely in Hong Kong after a crack was discovered in the cockpit windshield, the airline said Sunday. No injuries were reported.

Flight KA925 from the Chinese city of Dalian to Hong Kong had been airborne for 90 minutes Saturday when its pilot noticed the crack in one of several layers of glass in the windshield, Hong Kong-based Dragonair said in a statement. It was not clear when the crack occurred.

The pilot of the flight - with 141 passengers and seven crew members aboard - decided it was safe to continue to Hong Kong, and the Airbus 320 landed without incident at the airport, the airline said.

The Apple Daily newspaper quoted a passenger as complaining those on board were not informed of the crack and only realized there was a problem when the plane landed.

The passenger, identified only by his surname, Wu, said flight attendants stopped some passengers from taking pictures of the cracked windshield.

It was the third such incident in three years involving a Dragonair Airbus 320, the Sing Tao Daily newspaper said. But Dragonair spokesman Kenrick Ko said he could not confirm the report.

Civil Aviation Department spokeswoman Stella Tse said the department has asked the airline to submit a report within four days.

Dragonair's Special Livery
By da83 from HKADB :

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Last-ditch bid to win favour for Wan Chai waterfront heliport
25 October 2005
South China Morning Post

Proponents of a commercial heliport on the Wan Chai waterfront have revised their plans in a last-ditch effort to win approval.

The Hong Kong Regional Heliport Working Group now suggests building three pads at the Wan Chai ferry pier site adjacent to Golden Bauhinia Square and floating just one in the harbour, rather than placing all four on the water. They would cater to helicopters serving businesses in the Pearl River Delta.

The move drew a cool response from the government, which said existing plans for new and expanded heliports were enough to meet demand. It has proposed a two-pad heliport at the site for official and commercial flights within the city.

"We plan to expand the cross-border heliport at the Shun Tak Centre and we are thinking of building another one in southeast Kowloon," Permanent Secretary for Economic Development and Labour Sandra Lee Suk-yee told a Legislative Council panel meeting. "We have sufficient heliports to handle the ever-increasing aviation flow between the regions."

But working group member Sir Michael Kadoorie said none of the cross-border heliports could accommodate the single-engine machines that make up 85 per cent of the world's commercial helicopters.

"It would be a shame if the business migrated somewhere else simply because it does not have access to this very important city," he said.

Group member Sandra Mak said the government favoured building two heliports in order to avoid reclamation. "They don't even want to consider pontoons, although our legal expert said pontoons do not amount to reclamation."

The group has estimated that under its new proposal, the heliport could handle 35 per cent more flights than a two-pad port, and noise would not be excessive.

According to the group's statistics, 16,500 helicopter movements were handled in 2003 alone, but a two-pad heliport could handle only 14,000 movements per annum.

"It is simply inadequate, for domestic or regional flights," Mr Kadoorie said.

Deputy secretary for economic development and labour (air services) Wilson Fung Wing-yip addressed the question of whether floating helipads still amounted to reclamation.

"Some construction work of the floating pad, such as installation of the pillars, may induce permanent alteration to the seabed and could be regarded as reclamation. If the floating platform is linked to the pier only by chains, it might not even pass a safety test and won't be approved," he said.

The new proposal met opposition from Wan Chai District Council, which believed it would generate more noise. But lawmakers in general support the idea of a heliport for cross-border services.

27 October 2005
Corporate Press Release
Dragonair Increases Capacity to Beijing, Shanghai in Winter Schedule

(HONG KONG) Dragonair will increase capacity to Beijing and Shanghai in its winter schedule, which begins on October 30, while continuing to give travellers a choice of eight and 15 to 16 flights a day, respectively, to the cities.

"We will operate more of our larger A330s on flights to the cities of Beijing and Shanghai and maintain frequencies at summer schedule levels," said CEO Stanley Hui. At present, some services operate with A320 and A321 aircraft.

"We already operate a high level of daily frequencies to these important Mainland cities, providing travellers with a wide choice of convenient flying options. The use of more A330s will also raise Business Class capacity on the routes."

Passenger services to Hangzhou will also see capacity increase, while five of the other Mainland cities will see frequencies reduced, in line with the lower market demand over the winter season.

Dragonair Cargo, meanwhile, plans to operate five additional flights a week to Taipei in the winter schedule, subject to government approval.

"These services would aim to meet the demand for cargo shipments between Taiwan and the Mainland, which has been growing steadily in recent months," said Mr. Hui.

The winter timetable is valid from October 30 to March 25, 2006.

Cambodia's Siem Reap Airways launches flights to Hong Kong

PHNOM PENH, Oct 28 (AFP) - Cambodia's Siem Reap Airways was to launch on Friday a service from Phnom Penh to Hong Kong, returning via Siem Reap, the gateway city to Angkor Wat, an official said.

The airline, a subsidiary of Thai carrier Bangkok Airways, is to make the return trip three times per week on Monday, Wednesday and Friday, Keo Sophal, undersecretary of state at the Civil Aviation authority, told AFP.

An airport official said the carrier would use an Airbus 320 for the service.

The service will cater for a rising number of tourists to Cambodia, one of the world's poorest countries which is still struggling to recover from nearly three decades of conflict that ended in 1998.

UPS Hong Kong double digit growth in business and earning
27 October 2005

UPS Hong Kong has announced its business result for the third quarter in 2005. Consolidated operating revenue and operating profit recorded US$15.5 billion and US$953 million, up 12.3% and 19.1% respectively. Operating revenue and operating profit of supply chain and transportation services increased by 130% to US$1.6 billion, and 37% to US$70 million respectively. Earning per share reached US$0.86, by 22.9% when compared with the same period last year.

As for the international express services, operating revenue in the third quarter recorded US$1.95 billion, up 14.5% when compared with the same period last year, while operating profit within the period recorded US$318 million, up 19.5%. On the other hand, volume of export transportation in Asia-Pacific region increased by 26% within the period, in which China recorded growth of 34% which was higher than in other region. Volume of export transportation in the world recorded an annual growth of 12.5%.

Hong Kong Economic Journal

DHL expands to meet accelerated growth
( 28/10/2005 )
Trade Development Council

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DHL's Scott Price and Airport Authority chief executive David Pang launch DHL's Central Asia Hub expansion

Global express and logistics company DHL recently announced an additional US$110 million to expand its Central Asia SuperHub (CAS) at the Hong Kong International Airport - six years ahead of schedule - to meet phenomenal growth in the Asia Pacific region.

CAS will be the largest fully automated express hub facility of its kind in the region when it is completed in 2007. CEO of DHL Express Asia Pacific, Scott Price, said DHL was the first in the industry to recognise the merits of locating a hub in Hong Kong which connects Macau and the Guangdong Province to form the Pearl River Delta (PRD).

He said expanding the CAS six years ahead of schedule clearly reflects the important role that Hong Kong plays as a conduit for international and intra-Asia trade.

"The Central Asia Superhub also plays a critical role as a gateway to the Pearl River Delta which accounts for 40 per cent of China's exports," added Mr Price. Over 70 per cent of DHL's China in-and-out-bound shipments are routed through DHL's Hub in Hong Kong

In 2004, the Hub handled over 22 million shipments, over 60 per cent which were intra-Asia shipments. In 2005, the Hub will handle more than 30 million shipments and expects its business to triple over the next decade. Volume is expected to reach 40 million units by 2008 alone.

The new fully automated hub when completed will increase DHL's parcel sorting capacity to 35,000 pieces per hour from 20,000 and its document-handling capacity from 15,000 per hour to 40,000.

Hong Kong Airport Authority's CEO, Dr David Pang, said DHL's expansion will further stimulate air cargo growth, especially those requiring speedy and reliable services. "It also underpins Hong Kong's overall competitiveness and its booming express cargo business, reinforcing Hong Kong's position as the world's largest international cargo airport."

DHL is 100 per cent owned by Deutsche Post World Net. Its international network links more than 220 countries and territories worldwide.

October 28, 2005
Government Press Release
New Peng Chau helipad proposed

To better serve the emergency needs of the community on Peng Chau, the Government plans to build a new helipad with emergency vehicle access just off Pak Wan.

An existing helipad on a soccer pitch on a hilltop near Tai Lung Tsuen can be accessed only by steep stairs. The Government Flying does not consider this ideal, especially as it is in a confined area.

The work will require dredging and reclaiming about 12,400 square metres of foreshore and sea-bed. It is scheduled to begin next May for completion by mid-2007.

Plans published in Gazette

A notice describing the affected area was published in the Government Gazette today.

It has also been posted with a related plan on notice boards near the site. The plan can also be seen at the Lands Department Survey & Mapping Office, 23/F, North Point Government Offices, 333 Java Road and the Islands District Office, 20/F, Harbour Building, 38 Pier Road, Central.

Anyone who has an interest, right or easement in or over the affected area can submit a written objection to the Director of Lands, 20/F North Point Government Offices, by December 28.

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Dragonair sees rise in volume with US link-up
By Ian Putzger
October 31, 2005

Thanks in part to its US freighter operation, Dragonair's cargo volumes are showing double-digit growth. With more capacity poised to enter its fleet next year, the carrier is bent on continuing this growth curve. Dragonair is looking at a number of new destinations in the US and intends to beef up its European and intra-Asian cargo flights.

Dragonair set a new monthly cargo record in September, with 18,328 tonnes carried, a 5.24 percent increase over the previous record of 17,415 tonnes set one month earlier. It was also a 47.56 percent increase on the amount of freight carried in September last year.

"Two consecutive record months keep us on track for our best year ever in cargo,'' said Stanley Hui, chief executive officer of Dragonair.

"September's performance was the result of continuing strong demand in our main market of mainland China. Shipments were particularly strong in the second half of the month ahead of the National Day holidays.''

The new figures mean that in the first three quarters of the year Dragonair carried 132,188 tonnes of cargo, 61.95 percent more than in the same period last year.

The biggest catalyst for Dragonair's cargo growth has been the launch of freighter service to New York in the spring with a B747-400F from China Airlines. "China Airlines will help to fill some of the space,'' said Albert Yau, head of Dragonair's cargo division.

Eastbound loads average 105 tonnes, predictably outperforming load factors on the return leg, which are usually around 60 tonnes but have been improving, according to Yau. Westbound load factors also depend to some extent on the day of the week.

"Directional imbalance is still one of the main problems for most of the carriers. We deal with the problem by increasing the revenue from the eastbound traffic (two rounds of rate increase during the peak seasons) and reducing the cost of operation. One way to achieve this is to fly direct from the US back to Hong Kong if the westbound load of the flight is within the payload limit of the aircraft,'' Yau commented.

Next year Dragonair is due to receive the first two of five converted 747-400s on order. Of the remaining 747-400SFs, two are scheduled for 2007 and one in 2008. The first two will arrive in September and December respectively.

Yau has not decided yet whether or not to keep the China Airlines freighter when Dragonair gets its own cargo planes. "We see no reason why we need to pull out the existing services if the market can sustain the added capacity,'' he stated.

He is looking at a number of additional points in the US, citing Los Angeles, Chicago and Dallas/Fort Worth as possible destinations. Dragonair also wants to step up its services from Hong Kong to Europe from 10 to 13 per week.

In the Asia-Pacific region, Yau wants to add three freighter flights a week on the Hong Kong-Taipei sector. In addition, he expects more bellyhold capacity on routes to second-tier cities in China as Dragonair replaces narrow-body aircraft in these markets with wide-body passenger planes. "This can effectively increase the cargo capacity from two tonnes to 18 tonnes,'' said Yau.

Information leaflets to airline passengers leaving for Mainland
Monday, November 7, 2005
Government Press Release

In response to media enquiries, a spokesman for the Health, Welfare and Food Bureau said today (November 7) that arrangements had been made by the Department of Health for the dissemination of information leaflets to airline passengers leaving for the Hunan, Anhui and Liaoning Provinces of the Mainland to remind them to take precautionary measures to guard against avian influenza during and after their trips.

Arrangements had also been made with the airlines to broadcast health messages on board all in-bound flights from these places to remind travellers to be vigilant against the disease, the spokesman added.

Boeing jet leaves Hong Kong in record flight bid

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HONG KONG, Nov 9 (AFP) - A Boeing 777 Worldliner took off from Hong Kong Wednesday in a bid to set the record for the longest flight by a commercial jet, 23 hours to London flying east over North America, a company staffer said.

The demonstration model of the American company's latest plane left the tarmac of Hong Kong International Airport at 10:30pm (1430 GMT) bound for Heathrow airport on a 20,100 kilometres (12,500 miles) voyage.

The record bid comes with the company battling with Eurpoean rival Airbus as the two giants tussle for control of the lucrative long-range aeroplane market.

The plane will fly on an eastern route over the United States, instead of the regular western route over Russia.

On board the twin-engined airliner were just 35 people, including airline executives, journalists and business clients as well as crew members.

Boeing rolled out its first 777-200LR Worldliner in February. It claims the plane is the longest-range commercial aircraft in the world.

It chose Hong Kong to launch its record bid as huge demand for new planes is expected from China and the Asian region in the future.

"Asia is extremely important (market) in the world for our 777s ... The airline community is very interested in these airplanes," said Randy Tinseth, the company's director of product and services marketing.

Agreement with Italy opens up more Cathay services to Rome
Ethiopian Airlines increases fifth freedom flights to eight per week
11 November 2005
South China Morning Post

Cathay Pacific Airways is expected to increase its services to Rome early next year after officials yesterday revealed the details of a new bilateral air services deals with Italy and Ethiopia.

The governments of Italy and Hong Kong late last month forged an air services agreement that allowed both sides to increase the number of weekly services between the countries to 10. The previous number was eight.

"Cathay Pacific is pleased the government has secured additional traffic rights to Italy. It is something Cathay Pacific and Hong Kong have been trying to secure for a while," the company said in a statement yesterday. "Once we have completed the government formalities, we intend to increase our passenger services to a daily service to Rome, from our current five services per week."

Cathay also flies a thrice weekly freighter service to Milan, where it picks up products such as high-end fashion goods for Hong Kong's trendy consumers.

Potential start-up Oasis Hong Kong Airlines has also applied for licences to fly to Milan, but those rights are being contested by Cathay.

Hong Kong Dragon Airlines said it would not contest the added flights won under the new bilateral agreement.

"We hope that both governments will continue discussion in respect of future opportunities to increase services to Milan and other cities in Italy," Cathay said yesterday.

Italy's debt-ridden flag carrier Alitalia does not fly to Hong Kong.

Ethiopian Airlines was the big winner in the deal struck with Adis Ababa three weeks ago. Carriers from both countries increased by three to eight the number of weekly fifth freedom flights - commonly referred to as beyond rights - they were allowed.

No Hong Kong airline flies to Addis Ababa, but Ethiopian Airlines will use the new rights to transport passengers and cargo from Hong Kong to Bangkok.

Cathay Pacific announced yesterday that it carried 11.9 per cent more passengers last month than the same period last year. The carrier carried 1,306,116 passengers while load factor decreased by 1.3 percentage points year on year to 76.3 per cent. The company blamed the drop on the Muslim holiday of Ramadan, making less people travel.

Yield, the amount paid for every passenger kilometre flown, remained depressed as customers continued to book late in an environment of aggressive ticket pricing.

The carrier carried 103,962 tonnes of cargo last month, up 14.8 per cent year on year, boosted by an increase in transshipment cargo to and from Shanghai. The cargo load factor was 69.9 per cent, down 1.4 points, reflecting weak demand for exports from Europe and the US to Asia.

CR Airways objects to route allocation
CR Airways, a Hong Kong-based start- up carrier, has filed objections against the allocation by the Air Transport Licensing Authority of certain mainland route rights to rival Hong Kong Express.

Alman Loong
Hong Kong Standard
Saturday, November 12, 2005

CR Airways, a Hong Kong-based start- up carrier, has filed objections against the allocation by the Air Transport Licensing Authority of certain mainland route rights to rival Hong Kong Express.

CR Airways, privately held by China Rich Holdings chairman Yip Kwong, said it filed the objections because some of the potential routes by Hong Kong Express will overlap and directly compete with the company.

"We consider it as a joke," said Hong Kong Express chief executive Andrew Tse. "There is no point of creating severe competition, we would prefer to be cooperative."

The two local start-up airlines have obtained licenses to fly passengers to China and tap into a market served by Hong Kong Dragon Airlines. The licenses will become official only when no objection is pending after a gazette is published.

Of 15 Chinese cities included in the license granted to Hong Kong Express, only Shenzhen, Shantou, Wenzhou, Zhengzhou and Zhanjiang are not served by Dragonair and some also overlap with those of CR Airways.

CR Airways is objecting to 10 destinations that Hong Kong Express may fly to including Kunming, Nanjing, Wuhan, Tianjing and Sanya.

The hearing, which will take place in the High Court, is scheduled for next Saturday, the same day Cathay Pacific will present an objection against Oasis Hong Kong Airlines' route allocation.

Hong Kong Express Airways, also a helicopter service provider, said that the objections will delay the timetable for launching the new routes. It added that it is confident that the objection will be rejected by the court.

Hong Kong Express, the city's fourth airline, added a service to Hangzhou to its inaugural Guangzhou flights in October and plans to buy more aircraft to expand its network in the mainland and to Taiwan.

The airline also face ticket fare pressure from Dragonair.

"The load factor [since launch] is between 50 to 60 percent due to fierce price war," Tse said.

He added that the company will seek an opportunity to launch more new mainland routes but he declined to give a timetable.

A spokeswoman for ATLA also confirmed that a public inquiry will be held on November 19 to consider Cathay's representation against Oasis Airlines' application.

Oasis applied to launch direct flights to Milan, London (Stansted), Cologne, Chicago and Oakland, California. The application originally drew complaints from three airlines but Hong Kong Eagle Aviation and CR Airways have shelved their objections.

Aviation Security (Amendment) Ordinance to come into operation
Thursday, November 10, 2005
Government Press Release

The Aviation Security (Amendment) Ordinance 2005 (the Amendment Ordinance) will come into operation today (November 10) according to a commencement notice tabled at the Legislative Council on October 12, 2005.

The Amendment Ordinance imposes criminal sanctions against unruly or disruptive behaviour offences committed on board civil aircraft, and extends Hong Kong's jurisdiction over unruly or disruptive behaviour offences committed outside Hong Kong on board non-Hong Kong-controlled civil aircraft which next land in Hong Kong.

"The Amendment Ordinance introduces seven new offences relating to unruly or disruptive behaviour committed on board civil aircraft, including offences relating to obstruction of crew members in performing their duties; failure to comply with instructions given by crew members; disorderly behaviour; tampering or interfering with aircraft component, apparatus, equipment or systems; intoxication by alcohol, drug or other intoxicating substances; smoking and the operation of electronic devices in the aircraft when it is prohibited," a spokesman for the Civil Aviation Department said.

In addition, Hong Kong's jurisdiction has been extended to 11 existing criminal acts and offences falling under the general description of assault, intimidation, sexual assault and child molestation committed on board a non-Hong Kong-controlled aircraft while in flight outside Hong Kong, with its next place of landing in Hong Kong.

The maximum penalty for the new unruly behaviour offences will range from a fine of $25,000 and 1-year imprisonment under summary conviction to a fine of $100,000 and 5-year imprisonment under conviction on indictment.

The International Civil Aviation Organisation (ICAO) has passed a resolution urging Contracting States to enact law and regulations to deal effectively with the problem of unruly passenger offences.

"As an international aviation centre, Hong Kong has observed closely the safety and security standards and practices promulgated by ICAO under the relevant international conventions. The Amendment Ordinance is indicative of our commitment to the international efforts to deal more effectively with the growing problem of unruly passengers," the spokesman said.

Translating from today's Hong Kong Wen Wei Po:
Chinese Border Control may be set up within the Hong Kong International Airport (HKIA)

To provide more convenience for the foreigners to enter China, the Hong Kong Airport Authority (HKAA) would like to set up a Chinese Border Control inside HKIA to raise their position between China and the rest of the world. For this, one official of the Hong Kong and Macao Affairs Office, under the State Council of the Peoples Republic of China (PRC), says it is possible for setting up a Chinese Border Control within the HKIA if the laws in HK allows.

As early as April this year, Dr David J Pang, the CEO of the HKAA, said that they had talked about the Border Control set ups in the HKIA with the HK Government and the related Chinese Departments, for providing quicker and more convenience services and the processes of entering China directly in the HKIA.

Direct Visa Applications for Foreigners

Dr Pang pointed out that, although Hong Kong is a Special Administrative Region, it is still a part of China. He hoped the foreigners to enter HK as if they had entered China. The HK Government already supported this issue principally. It is only has more discussions on the details and on the technical issues.

Qian Lijun, the Communicator of the Hong Kong and Macao Affairs Office, under the State Council of the PRC, says there are three ways for foreigners applying Chinese Visas to China; they can apply visas within the Consulates in their home country, applying visa upon arrival, or in the China Immigrations Office in Wai Chai. (Note: One missing: they can apply Chinese Visa in the agencies of the China Travel Service HK Ltd if they are in HK or Macao)

Qian said according to the passenger flow of the HKIA, it is completely possible for it to making the Visa applications for foreigners going to China, but he stress that it must be allowed by the HK laws before the conceive came true.

Han Xiao
Reporter of Wen Wei Po in Beijing News Center

10 November 2005
Dragonair Honoured With IFA Whittle Safety Award 2005
Corporate Press Release

(HONG KONG) Dragonair has been named the recipient of the Whittle Safety Award 2005, bestowed by the International Federation of Airworthiness (IFA). The award recognises the airline's development of a unique Aircraft Technical Management model that has an excellent record of safety.

Receiving the award on behalf of Dragonair at a joint meeting of the Flight Safety Foundation, the IFA and the International Air Travel Association in Moscow, Russia, David Lui, General Manager, Engineering, said: "This is a tremendous honour for Dragonair, one that we share with our excellent partners in the Aircraft Technical Management initiative. The superb level of collaboration of all the involved parties has been the key to the success of this innovative model."

Dragonair introduced its Aircraft Technical Management model in 2000 to provide technical engineering support for its fleet of Airbus passenger aircraft and Boeing 747 freighters.

Under the model, the airline's own Integrated Operations Centre and Maintenance Operations Department handle the day-to-day core functions of aircraft maintenance, while the service providers offer back-of-house support. The system is underpinned by stringent partner selection criteria and a unique collaboration model that provides established channels and procedures for the Dragonair team to work with its technical and inventory management service providers, comprising SIA Engineering Company, SR- Technics and Cathay Pacific Engineering.

The purpose of the Whittle Safety Award, which is named after the UK's Sir Frank Whittle, co-inventor of the jet engine, is to honour the world's aerospace community's most outstanding achievement in the field of air safety. Dragonair is the first Hong Kong airline to receive the award.

"The award is international recognition of the aviation engineering expertise that we have in Hong Kong," said Mr. Lui. "A number of airlines have shown interest in the model, so it has the potential to contribute to better air safety procedures worldwide."

Government Flying Service to hold open day at airport headquarters
Government Press Release
Saturday, November 12, 2005

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The Government Flying Service (GFS) will hold an open day, for the first time, at its headquarters at the Hong Kong International Airport next Sunday (November 20) to introduce the wide range of services provided to the public.

The open day will be held from 10am to 5.30pm at 18 South Perimeter Road, Hong Kong International Airport, Lantau.

The GFS works closely with other government departments to provide the community with a wide spectrum of flying services, including maritime and land search and rescue, casualty and medical evacuation, hill fire fighting and support for various law enforcement agencies. It has a mixed fleet of aeroplanes and helicopters providing round-the-clock services to the public.

Open day activities will include: a display of GFS aircraft (including AS332 L2 Super Puma Helicopter, EC 155 B1 Helicopter and Jetstream J-41 Aircraft) and aviation equipment, display of Fire Services Department's equipment, an exhibition booth run by the Civil Aviation Department, a game stall run by the Agriculture, Fisheries and Conservation Department, a display of the Lands Department's aerial photography equipment, a display of the Civil Aid Service's mountain rescue equipment and a game stall run by the Hong Kong Air Cadet Corps.

There will also be a children's-sized flying suit for photograph taking. Don't miss the opportunity to let the children dress up as a pilot.

Three sessions of demonstrations and performances will be held at 12pm, 2pm and 4pm. They include a flight demonstration by the GFS, performances by the Police Dog Unit, performances by the Civil Aid Service Motorcycle Team, performances by the Hong Kong Auxiliary Police Force Band and the Hong Kong Air Cadet Corps Ceremonial Squadron.

People are welcome to join in the open day. Admission is free. They can take the Mass Transit Railway (MTR) to Tung Chung Station and then take Bus No. S52 at the Tung Chung MTR Bus Terminus. No parking spaces will be available.

As the GFS is situated within the Tenant Restricted Area of Hong Kong International Airport, all people aged 15 and above entering the GFS Headquarters are required to produce valid proof of identity under the Aviation Security Ordinance. Children under the age of 15, who are unable to produce valid proof of identity, must be accompanied by an adult.

For further information, please contact 2305 8212 or visit the GFS homepage at http://www.gfs.gov.hk/.

When will A380 visit HK???

Hong Kong airport Oct cargo throughput 317,000 tons, up 6.9 pct year-on-year
14 November 2005

HONG KONG (AFX) - Cargo throughput in October at Hong Kong International Airport rose 6.9 pct year-on-year to 317,000 tons, while passenger traffic rose 6.5 pct year-on-year to 3.57 mln, the Airport Authority of Hong Kong (HKIA) said.

The Airport Authority said it recorded 23,680 aircraft movements in October, up 12.2 pct year-on-year and the airport also set a new single-day record of 151 freight movements on Oct 21 as a result of the robust cargo throughput.

Airport Authority commercial director Hans Bakker said the impressive performances in cargo throughtput reflect a continuing trend at HKIA, which is a result of Asia's buoyant economy, as well as continuously strong demand for exports from mainland China.

HK allows Cathay, other airlines to up fuel surcharges

HONG KONG, Nov 18 (Reuters) - Hong Kong will allow eight airlines to raise passenger fuel surcharges in December to help offset high oil prices, including the city's dominant carrier Cathay Pacific Airways Ltd. , which will be making its fifth increase this year.

The Civil Aviation Department said on its Web site (www.cad.gov.hk/english/fuel_surcharge.htm) that it had approved applications from eight airlines requesting increases in passenger fuel surcharges for the months of December and January.

The increases range from 2.2 percent to 8.5 percent, compared with the surcharge for the two months ending in November.

Cathay will raise its surcharge on short-haul flights by 2.2 percent to HK$93 ($11.9) per ticket and on long-haul flights by 8.5 percent to HK$383.

Cathay currently charges its customers an additional HK$91 on short-haul flights and $353 per ticket on long-haul flights.

"It will be our eighth (fuel charge) increase since June 2004, and will be the fifth this year," said a Cathay spokewoman.

Air China Ltd. , China Eastern Corp. Ltd. , China Southern Airlines Co. Ltd. , Hong Kong-based unlisted Dragonair, Shangdong Airlines, Shenzhen Airlines, and Xiamen Airlines, will be allowed to raise their surcharges by 2.2 percent to HK$93 per flight from Dec. 1.

Fuel accounts for a large share of airlines' costs and record high prices this year have severely crimped earnings. Investors also worry that higher ticket prices could eventually curb travel demand.

Shares in Cathay Pacific rose 1.54 percent to HK$13.15 by late Friday morning, outperforming Hong Kong's benchmark Hang Seng Index , which rose about 0.6 percent. Cathay shares had slipped 1.5 percent in the past month through Thursday's close.

Shares of China Southern, which have risen 4.6 percent over the past month, gained a further 1.11 percent to HK$2.275.

Shares of China Eastern, which have risen 6 percent over the past month, were unchanged at HK$1.22, and Air China's shares, which have risen 4.1 percent over the past month, were flat at HK$2.575. (US$1=HK$7.8)

Is there any potential for Dragonair to merge with Cathay Pacific? Or at least for Dragonair to join Oneworld? Is there any such speculation in the local media??

Is there any potential for Dragonair to merge with Cathay Pacific? Or at least for Dragonair to join Oneworld? Is there any such speculation in the local media??
There was such a plan a decade ago, but now that Dragonair is primarily Chinese-owned and Cathay is still under the British hong, it's unlikely the two will come together. Cathay is more interested in expanding into China on its own, and holds 18% of its shares, while Swire holds another 8%.

Filipino man detained after alleged bomb threat on plane from Hong Kong
18 November 2005

MANILA, Philippines (AP) - A Filipino seaman was detained after allegedly threatening to trigger a bomb on a flight from Hong Kong to Manila on Friday, a Manila airport official said.

Flight attendants aboard the Cathay Pacific Boeing 747 reported hearing Glenn Masahon, 28, as saying he was "going to press something that will explode," said Angel Atutubo, assistant airport manager for security.

The crew said the man refused to give up a bag he was holding, and they had to chase him to grab it from him, but found no bomb inside, Atutubo said.

Police immediately arrested Masahon after the plane landed around noon (0400 GMT) Friday, but found only used clothes and other belongings in the bag.

Atutubo said the man appeared to be mentally unstable, but still will be charged with making bomb threats and creating alarm and scandal.

"It's no joke when you say there is a bomb on a plane," Atutubo said.

He said the plane was allowed to fly back to Hong Kong after it was checked by police using bomb-sniffing dogs.

18 November 2005
Cathay Pacific Corporate Press Release
Cathay Pacific Hosts Airline Summit; Hong Kong's Acting Chief Executive Emphasises Importance Of Aviation

http://downloads.cathaypacific.com/cx/press/20051118_aapa01.jpg

http://downloads.cathaypacific.com/cx/press/20051118_aapa02.jpg

Cathay Pacific Airways, the airline of Hong Kong, today proudly hosted and chaired the 49th Assembly of Presidents of the Association of Asia Pacific Airlines at which Acting Chief Executive of the Hong Kong SAR Government Mr Rafael Hui emphasised the importance of aviation to Hong Kong’s development.

"The Hong Kong SAR Government is committed to strengthening our status as an aviation hub," Mr Hui said in his opening ceremony speech to the Assembly in Hong Kong. “Leading airlines are among the most recognised global brand names and, in some instances, the pride of the economies concerned."

He said: "Hong Kong is fortunate enough to be located at the heart of this region and right at the gateway of China. Our unique geographical position has enabled Hong Kong to develop into a major aviation hub."

And added: "We spare no efforts in improving our inter-modal connections with the Mainland, in particular the thriving Pearl River Delta area, so as to enlarge our passenger and cargo catchment area."

He said Hong Kong is a true believer in free economy and open markets.

"The same philosophy pervades throughout our aviation sector. Airlines are able to plan and develop their businesses in a liberalised, transparent and predictable environment. And our market allows airlines to compete solely on their own strengths. The Government provides absolutely no subsidy but some support to our local airlines in whatever form or shape," Mr Hui said.

Cathay Pacific Chairman David Turnbull, in welcoming remarks to the Assembly, said the aviation industry has dealt with a number of crises in recent years, but ultimately come through them in better shape.

"Aviation is a tough business," Mr Turnbull said. "On the whole Asian airlines are generally doing much better than the rest of the world. We have faced all sorts of crises in the past. Most of the airlines are strong enough and prepared should there be another."

17 November 2005
Corporate Press Release
Cathay Pacific to launch Dallas and Atlanta freighter service

Cathay Pacific Airways today celebrated the launch of Hong Kong's first direct freighter service to Dallas and Atlanta, providing faster delivery from Hong Kong and the Chinese Mainland to growing markets in the south and southeastern United States.

The three-times-weekly service will commence on 19 November, stopping first in Dallas and continuing onto Atlanta. The new route means that Cathay Pacific will be able to reach any part of the continental US within a day's trucking from its gateway cities. The two new destinations will also bring new opportunities to connect with transhipments from South and Central America.

Cathay Pacific Director and General Manager Cargo, Ron Mathison said during the launch ceremony: "The United States is one of our strongest export markets. Our new Dallas and Atlanta service will extend our coverage of the country, further consolidating Hong Kong's position as the world's busiest international cargo airport and global freight gateway for Chinese exporters."

The new service will take the total number of destinations on Cathay Pacific's freighter network to 26. The airline's freighters already serve Los Angeles, San Francisco, Chicago, New York and Vancouver in Canada. With the new service, Cathay Pacific will operate 21 cargo flights a week to North America. Cathay Pacific is currently the world sixth largest air cargo carrier by volume.

The new route is part of Cathay Pacific's ongoing expansion plan. The airline earlier this year launched 12 weekly freighter services to Shanghai. It took delivery of a new Boeing 747-400F freighter in February and then in mid-December will take delivery of the world first converted 747-400 passenger-to-freighter aircraft, the Boeing 747-400BCF, or Boeing Converted Freighter. Cathay Pacific is the launch customer of this new aircraft type and will take delivery of six aircraft in the next 2 years with options for an additional six freighters.

Qatar Airways Announces Hong Kong As New Route
15 November 2005
Corporate Press Release

World Travel Market, LONDON – Qatar Airways has announced plans to launch scheduled flights to Hong Kong at the beginning of the Summer 2006 season.

The daily flights will operate non-stop from the airline’s hub of Doha, capital of State of Qatar, from March 26 next year.

Hong Kong is one of the world’s most glamorous destinations offering breathtaking views and exciting attractions such as the recently-opened Disneyland. Tourism authorities have designated 2006 as Discover Hong Kong Year, adding more impetus to Qatar Airways’ decision to launch flights to the region.

Hong Kong will become Qatar Airways’ 12th Far East destination that already covers Osaka, Shanghai, Beijing, Seoul, Manila, Cebu, Singapore, Kuala Lumpur, Bangkok, Yangon and Jakarta.

In the year that Qatar celebrates being host country of the 15th Asian Games in Doha in December 2006, Qatar Airways is targeting Asia as a growth area for new routes and increased capacity on existing services. Qatar Airways is also the official airline of the Games.

Announcing the new Hong Kong route during a press conference at World Travel Market in London, Qatar Airways Chief Executive Officer Akbar Al Baker said the special administrative region of China was a buoyant market that appealed strongly to both leisure and business travellers.

“Hong Kong is a key financial, business and leisure centre which is a must for any airline to serve – and Qatar Airways is no exception,” he said, addressing a press conference in the British capital.

“We are delighted to put Hong Kong on our global map from March next year and pleased to announce that it will be our first Asian service to feature our brand new inflight service.

“Passengers will experience the best levels of inflight comfort and service seen anywhere in the aviation industry. This new service ethos that has already been introduced on the London Heathrow – Doha route will be gradually rolled out on other routes over the next few months.”

Once home to fishermen and farmers, today’s Hong Kong is a city bustling with nightlife, and is a commercial, financial, and vibrant metropolis that merges Chinese and Western influences.

The former British colony became a special administrative region of China in 1997 when Britain’s 99-year lease of the New Territories, north of Hong Kong island, expired.

Added Al Baker: “Hong Kong is spending a lot of money and resource during 2006 and we are only too pleased to be able to launch our flights to this wonderful destination during Discover Hong Kong Year. Hong Kong fits nicely into our growth strategy to serve key capital and secondary cities around the world.”

Qatar Airways currently flies to 67 destinations across Europe, Middle East, Africa, Indian subcontinent and the Far East. With its codeshare partners, the airline serves more than 80 destinations worldwide. Qatar Airways today launched flights to the Kenyan capital, Nairobi, while services to the Spanish capital Madrid start on December 2, followed two weeks later on December 15 with flights starting to the German capital, Berlin.

The Hong Kong route will be operated with the modern Airbus A330-200 in a two–class configuration of Business and Economy. Business Class features up to 24 seats reclining 160 degrees in a 2-2-2 configuration, while Economy has 259 seats.

The Airbus A330-200 features Qatar Airways’ award-winning Audio Video On Demand system, allowing passengers in all three classes to choose from a list of more than 40 international movies, as well as short programmes to view on their individual TV screens.

Passengers can also listen to an extensive list of 250 CDs and 16 audio channels. In addition, there is a choice of 12 video games to play through the interactive TV screens.

Qatar Airways operates a fleet of 42 all-Airbus aircraft which will almost triple in size to 110 jets by 2015. The airline recently signed a letter of intent to acquire up to 60 of the new generation Airbus A350s. And it plans to acquire 20 Boeing 777s with a total value for both orders set to be worth US$15.2 billion.

Qatar Airways is one of a select-few airlines in the world ranked Five Star by Skytrax, the independent aviation industry monitoring agency. Skytrax also named Qatar Airways’ cabin crew as Best in the Middle East for the third year running recently and fifth best in the world following a survey of more than 12 million passengers worldwide.

During the 2004/2005 financial year, Qatar Airways carried 4.6 million passengers, up 35% on the previous 12-month period. Passenger numbers are projected to rise sharply in the 2005/2006 financial period to more than 6 million.

There was such a plan a decade ago, but now that Dragonair is primarily Chinese-owned and Cathay is still under the British hong, it's unlikely the two will come together. Cathay is more interested in expanding into China on its own, and holds 18% of its shares, while Swire holds another 8%.But Swire's stake is only 44% so the majority of Cathay is Chinese owned.

Cathay's senior management team is still very heavily British-influenced :
http://www.cathaypacific.com/hk/aboutcx/investor/0,,128670,00.html

The largest shareholder is Swire Pacific, with 47% ownership while Chinese-backed CITIC Pacific owns 26%. The rest should be in the public hands since CX is floated on the Hong Kong Stock Exchange. There was talk about merging with Air China a few months ago but the British and the Chinese couldn't figure out a way to streamline the share ownership. British-backed Swire didn't want to lose its controlling stake in Cathay and there was no way Air China was going to leave Chinese hands.

That being said, despite these differences, Cathay and Dragonair do have a codeshare agreement. Both airlines are trying to fend off other upstart carriers, such as CR Airways and Hong Kong Express, rather than fight each other to the death.

^ Cathay don't need to merge with Dragonair or Air China. However Oneworld needs a Chinese hub. Cathay can offer a hub to E/SE Asia but not to China as their operations are so restricted there. Bringing Dragonair on board would be an obvious solution. Another would be to bring either China Eastern or Air China into Oneworld. I would of course like to see both - with Hong Kong and either Shanghai or Beijing as major Oneworld hubs. If they can land such a deal then Oneworld will be unbeatable.

Decision on Hong Kong Express Airways application for licence to operate scheduled services
Saturday, November 19, 2005

The following press release is issued on behalf of the Air Transport Licensing Authority:

The Air Transport Licensing Authority (ATLA) today (November 19) conducted a public inquiry in relation to three applications made by Hong Kong Express Airways Limited (HKEA) to operate scheduled air services on the following routes:

a) Hong Kong/ Dalian/ Guilin/ Jinan/ Kunming/ Nanning/ Qingdao/ Shenyang/ Shijiazhuang/ Tianjin/ Xian/ Yantai/ Lijiang/ Huangshan(Tunxi)/ Zhangjiajie/ Jinjiang/ Wuxi and vice versa;

b) Hong Kong/ Tai Chung (Ching Chuan Kang)/ Okinawa and vice versa; and

c) Hong Kong/ Siem Reap/ Koh Samui and vice versa.

The ATLA decided to grant the licences. A copy of the ATLA's decision (in English only) is attached.

French tourist admits she tried to open airliner door to smoke while drunk
21 November 2005

BRISBANE, Australia (AP) A French woman who is terrified of flying admitted in an Australian court Monday that she drunkenly tried to open an airplane door mid-flight to smoke a cigarette.

Sadrine Sellies, 34, was placed on a good behaviour bond after pleading guilty in Brisbane Magistrates Court to endangering the safety of an aircraft.

Sellies was travelling on a Cathay Pacific flight from Hong Kong to the east coast city of Brisbane on Saturday when the incident occurred at the start of a three-week Australian vacation with her husband, the court heard.

She walked toward one of the aircraft's emergency exits with an unlit cigarette and a lighter in her hand and began tampering with the door, prosecutors said. But a flight attendant intervened and took Sellies back to her seat.

Sellies was arrested and charged by police on arrival at Brisbane airport.

Defence lawyer Helen Shilton told the court Sellies was terrified of flying and had taken sleeping tablets with alcohol before takeoff.

Shilton said Sellies has no memory of what happened on the flight and that she has a history of sleepwalking.

But Magistrate Gordon Dean sternly warned the woman: ``You must understand, if you are on a plane you must behave yourself.''

Sellies, who did not speak in court and was aided by a translator, was placed on a 1,000 Australian dollar ($734 US) bond _ meaning she will have to pay that amount if she commits another offence in the next 12 months.

HKSAR/Saudi Arabia air services agreement signed
Monday, November 21, 2005
Government Press Release

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The Secretary for Economic Development and Labour, Mr Stephen Ip, yesterday (November 20) signed an Air Services Agreement on behalf of the Government of the Hong Kong Special Administrative Region with the Government of the Kingdom of Saudi Arabia in Jeddah.

Representing the Government of the Kingdom of Saudi Arabia was Eng. Abdullah Rehaimi, President of the Civil Aviation Authority of Saudi Arabia.

With its strategic location in the Middle East, Saudi Arabia is an important emerging market in Hong Kong's overall aviation network. At present, two airlines are operating five flights per week between Hong Kong and Saudi Arabia, and a total of 13 carriers are operating some 110 weekly passenger and cargo services between Hong Kong and nine destinations in the Middle East.

"The Air Services Agreement signed today provides the legal framework for operation of air services between Hong Kong and Saudi Arabia and helps the airlines of the two places to plan further expansion of services," Mr Ip said.

"To further develop Hong Kong as a preferred transportation and logistics hub, we will continue to liberalise our air services regime and negotiate more new air services agreements with our aviation partners. These agreements, including the one we sign today, also provide valuable opportunities for Hong Kong and foreign airlines to expand their services," Mr Ip added.

The Air Services Agreement with Saudi Arabia is the 8th agreement Hong Kong has concluded with aviation partners in the Middle East, and the 55th with all overseas aviation partners.

Hong Kong has signed Air Services Agreements with Australia, Austria, Bahrain, Bangladesh, Belgium, Brazil, Brunei, Cambodia, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Israel, Italy, Japan, Jordan, Kenya, Kuwait, Luxembourg, Malaysia, Mauritius, Mongolia, Myanmar, Nepal, the Netherlands, New Zealand, Norway, Pakistan, Papua New Guinea, the Philippines, the Republic of Korea, Oman, Qatar, Russia, Singapore, South Africa, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom, the USA and Vietnam.

Airlines brace for turbulence as CR deal looms
Small carrier set for big expansion as mainland backer's plans for regional reach come to light
24 November 2005
South China Morning Post

The prospect of competing against a well-funded CR Airways with a fleet of 150-seat regional aircraft will undoubtedly turn a few heads at the headquarters of Hong Kong's biggest airlines this morning.

While a Hainan National Airlines (HNA)-backed CR Airways would appear to be particularly bad news for a more vulnerable start-up such as Hong Kong Express, HNA's grander aspirations to become a regional, if not international, player may step harder on the toes of more established players.

The Air Transport Licensing Authority in May approved CR's applications to fly to 27 mainland destinations. But people who know the scope of the HNA Group's ambitions say it has little interest in more mainland rights, whether or not the services can be mounted from Hong Kong.

HNA's real objective with CR Airways is said to be twofold: to use Hong Kong as a regional launch pad and to boost its asset portfolio before listing on the local exchange next year.

While lulling his rivals to sleep with sporadic services - mostly to a former Marcos hideaway in Laoaog in the Philippines, CR Airways owner Robert Yip Kwong has been quietly amassing licences for the past three years.

HNA's regional portfolio includes licences to fly to some of Asia's most popular tourist and business destinations - Kota Kinabalu, Langkawi, Siem Reap, Phuket, Phnom Penh, Hanoi, Ho Chi Minh City, Danang and Macau.

State planning authorities have long stymied the ambitions of Hainan Airlines, the group's main carrier. It offers a meagre international network of five scheduled destinations from its base in Haikou and is dependent on the authorities, not demand, for expansion.

While mainland airlines are "allocated" the rights to fly to international destinations, Hong Kong's airlines need only apply.

It is understood the 60 per cent on offer from CR Airways will come from Mr Yip's share of the firm, not the shares Hong Kong-listed Yu Ming Investments potentially bought last year when it boosted the carrier with an injection of $140 million in convertible bonds.

The bonds, which come good in 2009, have yet to be converted into shares but insiders say they would represent 30 per cent of CR Airways if that option were taken.

HNA Group chairman Chen Feng told mainland media on Monday that his application to jointly list Hainan Airlines and five other carriers on the exchange had been approved by Beijing.

It has been reported that the group - which will also pack Xinhua Airlines, Changan Airlines, Shanxi Airlines, Deer Jet and all-cargo carrier Yangtze River Express into the listing vehicle - will aim to raise $5 billion for fleet expansion.

The addition of CR Airways would add another, more exotic element to the portfolio, one foreign investors may warm to. The listed company could also give the group a Hong Kong-based company to fit the ownership and principle place of business requirements for the transfer of CR Airways' licences.

Mr Chen said the listing vehicle would be formed before the end of the year and expectations are for a second-quarter listing.

A mainland takeover of a Hong Kong airline is not unprecedented, of course; the Hong Kong-listed arm of the state-owned China National Aviation Corp took control of Dragonair from divisions of Swire and Citic in the mid-1990s.

But that acquisition surrendered the single largest share in the carrier to mainland hands, not majority control.

It's a safe bet that the number-crunchers at Government House will watch this upcoming share swap very closely.

"The ultimate test will be in CR Airways' final corporate structure," said an official with knowledge of the regulatory hurdles that lie ahead.

Hainan Airlines bids for HK carrier
State group proposes controversial share swap deal to take controlling 60 per cent stake in CR Airways
24 November 2005
South China Morning Post

State-owned HNA Group, the parent of Hainan Airlines, is in talks to take a controlling interest in CR Airways, Hong Kong's third carrier which offers mainly charter flights to the mainland and regional destinations.

HNA, the mainland's No4 aviation group by sales, is trying to buy a 60 per cent equity interest in CR Airways, the South China Morning Post has learned. The proposal involves a share swap between Xinhua Airlines, a 60 per cent-owned subsidiary of the group, and CR Airways, according to a source.

People close to the deal say a one-to-one equity swap would not be possible given state restrictions on foreign ownership of mainland airlines but declined to give the exact ratio.

Spokesmen for both airlines declined to say where the talks stood yesterday. However, Hainan Airlines' staff were informed through the company's electronic notice board at the weekend that group chairman Chen Feng had been appointed chairman of CR Airways, replacing Robert Yip Kwong, who would become vice-chairman.

If completed, the transfer of CR Airways' traffic rights would have to be approved by the Economic Development and Labour Bureau. But the bureau appeared to have no knowledge of the deal yesterday.

Deputy Secretary for Economic Development Wilson Fung Wing-yip said no formal notification had been received from the board of CR Airway about changes in the controlling stake of the company.

"If the controlling shareholder is changed and the principal place of business is changed, the airline would be no longer considered a Hong Kong-designated airline," Mr Fung said. "All the existing traffic rights owned by the company would be disqualified."

There was no clear definition of what constituted a controlling stake, he said.

According to Mr Fung, a Hong Kong airline must meet three criteria: it must be incorporated in Hong Kong; its principal place of business must be in Hong Kong; and it must be managed and controlled from Hong Kong.

CR Airways appeared to put some of the pieces in place for the new ownership regime last week when it applied for the licence to wet lease four used Boeing 737 aircraft, according to government sources.

It is thought those aircraft were leased from Hainan Airlines, which was one of seven mainland airlines selected to divide up as many as 150 B737s that state purchasers agreed to buy from Boeing at the weekend.

However, to fly those aircraft CR Airways would have to apply to amend its air operator's certificate which restricts it to operating Bombardier jets with maximum seating for 70. The B737 can carry up to 170 passengers.

CR Airways, like its rival Hong Kong Express, has tried to position itself as an alternative to Hong Kong's major carriers, flying passengers to secondary airports around the region rather than forcing them to go through Asia's main airports.

Both airlines use smaller aircraft and generally apply for traffic rights to secondary destinations such as Nanning and Jinan on the mainland and Laoag in the Philippines.

CR Airways' application to fly B737 services is understood to be under consideration at the Civil Aviation Department but officials say the process may take longer than usual given the larger scope of operations it has applied for.

23 November 2005
Dragonair a Winner at Business Traveller China Awards
Corporate Press Release

(HONG KONG) Dragonair's Economy Class has been voted the best of any airline in the inaugural Business Traveller China Awards. The awards were voted for by readers of the magazine, one of the leading travel publications for business travellers in the Mainland.

The airline beat strong competition from Singapore Airlines, second, and Thai Airways, third, to claim the award.

Dragonair came second in the Best Asian Airline Serving China award category, behind Singapore Airlines, and was also second in the Best Chinese Airline Serving China category, behind domestic airline and codeshare partner Air China.

"We're delighted to have done so well in these awards, which give Mainland business travellers a voice for the first time," said Singmay Chou, General Manager, Marketing. "We were competing against world-class competitors. Our success is a reflection of our commitment to continuous development of all our services and the quality standards that are a hallmark of our Hong Kong home."

More than 5,400 readers of Business Traveller China voted in the awards.

29 November 2005
Dragonair - October Sees New Daily Passenger Number Record
Corporate Press Release

(HONG KONG) A new daily passenger number record was set on October 23, with 19,537 travellers flying with Dragonair. This broke the old record of 19,242 set in the same month last year.

Passenger numbers for the whole month were 5.1% higher than in October last year, standing at 474,673 compared with 451,644.

"As our previous daily passenger record shows, October is a traditionally busy month for travel," said CEO Stanley Hui. "The numbers also represented a quite strong rebound from September."

The number of passengers flying in October was 14% higher than in September.

"Factors pushing traffic higher included more outbound travel from Mainland cities to Hong Kong and beyond during the 'Golden Week' holidays," noted Mr. Hui.

"Overall, lower group travel in the month was more than offset by strong growth throughout our network in individual travellers. October is always a busy time for events in Mainland cities, such as fairs and exhibitions."

Cargo recorded month-on-month growth of 2.8% to 34,704 tonnes. Year-on-year growth was basically unchanged, at -0.1%.

"Shipments to the US continued to perform well ahead of the Thanksgiving and Christmas holidays, when there is a lot of shopping activity, while shipments to Japan were below expectations," Mr. Hui said.

"We also saw a rise in shipments of electronic goods from the Mainland, and the Yangtze River Delta area in particular, to the major markets of Europe and the US as retailers ramp up supplies for the busy Christmas sales period."

More statistics : http://www.dragonair.com/icms/servlet/template?series=5&article=2626&lang=eng

Decision on Oasis Hong Kong Airlines Limited's application for licences to operate scheduled services
Wednesday, November 30, 2005

The following press release is issued on behalf of the Air Transport Licensing Authority:

The Air Transport Licensing Authority (ATLA) today (November 30) decided to grant the licences in relation to three applications made by Oasis Hong Kong Airlines Limited to operate scheduled air services on the following routes: -

a) Hong Kong/ London Gatwick and vice versa ;
b) Hong Kong/ Cologne Bonn Airport/ Berlin Sch?nefeld Airport/ Milan Malpensa and vice versa; and
c) Hong Kong/ Oakland/ Chicago and vice versa.

Wednesday November 30, 8:12 PM
HK Grants Oasis Airlines Rights To US, Europe Flights

HONG KONG (Dow Jones)--Hong Kong's Air Transport Licensing Authority Wednesday approved the application of Oasis Hong Kong Airlines Ltd. to operate scheduled passenger flights from Hong Kong to six cities in Europe and the U.S.

The government agency's approval comes after the city's largest airline, Cathay Pacific Airways Ltd. (0293.HK), opposed the budget airline's bid to operate flights from the city.

Cathay Pacific's contention to Oasis' application was based on its understanding that applicants for a license to operate air services must hold an Air Operator's Certificate, which Oasis hasn't received from the city's civil aviation authorities, ATLA said.

"Cathay's opposition is based on the sole ground that an AOC is a precondition to an application before this authority," said ATLA Chairman Ronny Wong. "On our construction of the regulations as reinforced by the past practice of this authority, we reject this contention."

In a statement, Cathay's spokeswoman Carolyn Leung said the airline "respects the ruling of ATLA, which fairly recognizes that (the airline was) seeking clarity with regard to previously understood practice."

"ATLA has expressly recognized in their ruling that we had not objected to Oasis being granted a license. Cathay Pacific remains firmly pro-competition," Leung added.

ATLA has granted Oasis rights to fly between Hong Kong and the cities of London, Cologne, Berlin, Milan, Oakland, and Chicago using Boeing 747-400 aircraft.

In February, Oasis was quoted by local media as saying it has plans to launch services to European cities by the end of 2005, with Berlin, Vienna, Cologne and Milan cited as possible locations. Service to the North American market could come in 2006.

However, the airline hasn't publicly announced when it plans to begin such services.

Oasis Hong Kong Airlines couldn't be reached for comment. Investors in the airline include Allan Wong, chairman of local electronics firm VTech Holdings Ltd. (0303.HK).

Hong Kong OKs Airline Surcharge Extension
Wednesday November 30, 7:05 am ET

HONG KONG (AP) -- Hong Kong's civil aviation officials have approved the requests of 53 airlines to extend their fuel surcharges for two additional months as a result of high oil prices.

The extension will allow most airlines flying into and out of Hong Kong to continue collecting fuel surcharges from their passengers until the end of January 2006, the Civil Aviation Department said.

Most airlines, including Hong Kong's top carrier Cathay Pacific Airways Ltd. and Hong Kong Dragon Airlines Ltd., the city's second largest, have also been allowed to increase the surcharge, the department said.

From December, most airlines will charge 93 Hong Kong dollars (US$12; euro10) per passenger on short-haul flights, up 2.1 percent from the current level. For long-haul flights, the levy will be increased to HK$383 (US$49; euro42), up 8.4 percent.

Charges, however, may vary among different airlines.

Hong Kong airlines are required to secure the approval of the Civil Aviation Department to levy fuel surcharges on passenger flights. Since mid-2004, the department has continuously renewed the requests of many airlines to collect the levies due to soaring fuel prices.

Cathay Pacific has said that jet fuel now accounts for more than a third of the company's operating costs, thus hurting its profitability.

UPS hopes to land daily cargo flights
Alman Loong
28 November 2005
Hong Kong Standard

United Parcel Service, the US delivery giant, is urging the Hong Kong government to speed up its open skies policy and hopes to capture the Japanese and Taiwanese cargo markets by launching daily flights in the near future.

"The Hong Kong government has opened up more of the skies in the past few years and initiated a lot of air service deals," general manager (Hong Kong and Macau) KKLeung said.

Talks on an air services deal between Hong Kong and the United States, expected to open next year early, will focus on an increase in the number of fifth freedom rights for passenger and cargo flights operated by US airlines. Fifth freedoms allow airlines to pick up and drop off passengers and freight for onward carriage to other destinations.

Leung said huge amount of manufacturing goods such as toys, watches and garments from Shenzhen and Dongguan are consolidated and then transported to Taiwan and Japan.

If an agreement is reached during this round of air services deals, Leung hopes to launch daily flights to Taiwan and Japan.

UPS faces fierce competition from the many players in the cargo market in Hong Kong and Taiwan.

In addition to Cathay Pacific and Dragonair, Chinese Airlines aims to handle HK$ 2.3 billion of cargo this year, 23 percent up on the same period last year, and is aiming for HK$2.6 billion in 2006. Booming exports from both Hong Kong and the mainland helped UPS post double-digit growth in cargo volumes in the first quarter. The firm plans to add extra daily services between Hong Kong and United States.

The Atlanta-based courier and logistics company signed a memorandum of understanding with Shanghai Airport Group to form a hub at Pudong International Airport set for completion in 2007.

The courier plans to add one flight from Guangzhou to the United States weekly and increase movements from Shanghai to the United States from 58 to 72 per week by 2007.

Express companies have been eyeing Hong Kong's fast growing export market in recent years. UPS aims to expand its existing Hong Kong logistics center and hire 100 extra staff in the coming year.

DHL International plans to double its express cargo terminal capacity at Chek Lap Kok with a new US$100 million (HK$780 million) center to deal with high-value manufactured goods from Guangdong factories.

阿聯酋航空招聘無上限
02/12/2005
太陽報

【本報訊】專營中東線的阿聯酋航空，將於明天在港舉行招聘會，提供大量機艙服務員空缺，名額不設上限，該公司計畫未來一年會增聘逾一千人。此外，阿聯酋航空最近亦斥資七百五十七億港元，添置四十二架波音777型客機，冀進一步開拓航空市場。

阿聯酋香港、中國及東北亞區域總經理劉榮柱表示，招聘組員希望在港聘請能操多種語言，如中、英文程度達高水平的員工，以應付公司擴展需要。他又指出，公司在未來一年，會再增聘逾一千名機艙服務員，受聘者需前往杜拜接受訓練，月薪連津貼約為一萬二千五百元。

另外，英國航空公司日前宣布在○八年三月前會削減三分之一的經理級職位，暫時未知駐港機構會否受影響。

Oasis licences are a good outcome for flawed process
2 December 2005
South China Morning Post

You would have to be a lawyer to understand the rationale behind the Air Transport Licensing Authority's (Atla) decision on Wednesday to reject Cathay Pacific Airways' objections and issue Hong Kong Oasis Airlines licences to six international destinations.

Below Deck is a firm supporter of increasing competition among airlines in Hong Kong so, on an empirical level, the decision makes sense and is good for local consumers.

But the rationale deployed by Atla, an "independent" body whose secretariat is run from the offices of the Economic Development and Labour Bureau, should be seen for what it is - an attempt to cover the government's posterior in a thin veil of quasi-judicial mumbo jumbo.

The contentious issue at the heart of the dispute was whether Oasis had the right to apply for Atla route licences before it had obtained an air operator's certificate (AOC) from the Civil Aviation Department.

The short answer is, yes. The experts tell Below Deck there is no law requiring an airline to hold an AOC before applying for route licences. The problem is that convention dictates that the AOC comes first.

When Oasis subverted that process the government opened itself to accusations of favouritism which is why Cathay, Hong Kong Eagle Aviation and CR Airways objected to the Oasis application.

Now, before my friends down at Swire House write a letter to my editor, it should be noted that Cathay filed a "representation", not an "objection". Nevertheless, Atla says it does not distinguish between the two.

While Cathay has been at pains to state it did not "object" to the Oasis application, its management had the opportunity to withdraw its complaint and pursue a clarification of the licensing process with Atla, without putting Oasis in between. But Cathay's management chose not to.

That move may appear to have been designed to delay Oasis's award but Below Deck also suspects Cathay was keen to hold the bureau to account for changing the procedure without consultation or any perceived need for transparency.

In his finding, Judge Ronny Wong Fook-hum (pictured) cited two precedents for a Hong Kong-based airline applying for routes without first obtaining an AOC. The first case, an application by Caledonian Far East Airways in 1985, was abandoned - a poor precedent.

The second case was last year's application for routes by Hong Kong Express Airlines.

Judge Wong found that Hong Kong Express did not possess the "relevant" AOC at the time of its application; its AOC was for helicopters, not the fixed-wing aircraft it intended to fly.

However, the reason for the AOC requirement is to assure the prospective airline is a financially sound organisation with the requisite controls and experienced personnel in place for its flight operations, training, maintenance, ground-handling and so on.

As such, Hong Kong Express had already shown its technical competence. Oasis is sure to do the same but, technically, that has yet to be officially recognised.

Two years ago, Judge William Stone, Judge Wong's predecessor, appeared to set the AOC-first precedent, well, in stone, in a dispute between Cathay and Dragonair over the former's rights to mainland routes.

In his submission, Justice Stone called the AOC a "necessary precursor" for Atla licences. But Justice Wong bizarrely dismissed that comment as "strictly obiter" (a casual or incidental remark) and unrelated to the question of whether an AOC must be attained before an Atla licence.

Surely, nothing a qualified justice of the peace says in an official finding can be considered a casual remark? The object is to apply the law and set precedent.

In the long run, Justice Wong's decision will serve the public by giving us a greater choice of airlines to fly with.

But it does not mask the fact that the government made a fundamental error in not telling the industry that it had decided to make it easier for new carriers to start flying.

Moreover, Atla's convoluted efforts to obfuscate the fact that it made a mistake are bound to fuel suspicions about its lack of independence.

Oasis Hong Kong set for June takeoff
2 December 2005
Airclaims Airline News

Oasis Hong Kong Airlines is set to become the fifth airline in Hong Kong after securing route licenses for six destinations.

Despite objections from Cathay Pacific Airways claiming that Oasis had no right to apply for routes in the absence of an Air Operator's Certificate (AOC), the Hong Kong Air Transport Licensing Authority (ATLA) granted Oasis six route licenses. The destinations (all from Hong Kong) are: London Gatwick (UK), Cologne (Germany), Berlin (Germany), Milan Malpensa (Italy) and two cities in the US - Oakland (California) and Chicago (Illinois).

Oasis has yet to obtain its AOC but expects to take its first aircraft, a leased Boeing 747-400, in April and start services two months later. The first route is expected to be between Hong Kong and London Gatwick.

The airline will have a fleet of five 747-400s within two years and will add a new destination approximately every two months.

Oasis will offer budget, non-stop long-haul services and passengers will have a choice of upgraded meals, entertainment and seat assignments at extra cost.

Cool.............It can assist HK in reinforcing its position of Asian Aviation Hub

DHL Expands Operations in Greater China
New Hong Kong-U.S. Direct Service Boosts Trade Links
Latest Investments Strengthen DHL's Leadership Position in Region
5 December 2005

HONG KONG - (BUSINESS WIRE) - Dec. 5, 2005 - DHL, the world's leading express and logistics company, today announced a new direct ten-times-weekly service between Hong Kong and the U.S. The flight represents the latest in a series of enhancements by DHL to further strengthen its service to the fast-growing Greater China region. The service will be operated by air cargo carrier Transmile.

The new service lifts the total number of commercial uplift and dedicated freighters operating the HKG-USA route to more than 100 flights per week. It also offers DHL customers in Hong Kong and South China added flexibility with more flights between Hong Kong and the U.S., together with DHL's latest cut-off time and market-leading inbound transit time.

"The new flight is part of our strategy to strengthen our service to the U.S., which is one of the key export markets for Asia. It is our foremost priority to provide best-in-class transit time to our customers, and we will continue to enhance our infrastructure and capacity as required to meet these needs," said Ross Allen, senior vice president - Aviation, DHL Express Asia Pacific.

The service represents DHL's continued investments to enhance its handling and payload capacity in the region in anticipation of the growth of intra-Asia cargo, in particular shipments moving in and out of China. It connects Hong Kong to DHL's hub in Wilmington, Ohio, and its gateway in Los Angeles.

"Our ongoing investment is in anticipation of the continued strong growth that DHL is experiencing in China and the Asia-Pacific region. We will continuously upgrade our capability and capacity to meet this growth, and further enhance our service offerings to customers in the region," said Jerry Hsu, president of Greater China and Korea, DHL Express Asia Pacific.

As an extension of its strategy to further intensify its operations in Greater China, DHL added a new direct overnight express service between Tokyo (Narita) and Shanghai (Pudong) in November 2005, as well as announced an upgrade of its Pudong Gateway in Shanghai.

Just last week, DHL announced the establishment of its new Guangzhou Gateway at the new Baiyun Airport - the first international express company to deploy operations at the new airport. This closely follows the expansion of the DHL Central Asia SuperHub (CAS) in Hong Kong, which is being expanded six years ahead of schedule to meet the anticipated growth in intra-Asia as well as inter-regional trade. The CAS presently handles about 22 million shipments a year. Following the $110 million expansion, scheduled for completion at year's end 2007, the facility will have a capacity of 40 million shipments a year.

These initiatives will further strengthen DHL's market leadership in China and enhance its capability and capacity both in the air and on the ground to continuously provide best-in-class service offerings for customers in the Pearl River and Yangtze River Delta regions.

Hong Kong inks aviation maintenance MOU with Canada
Monday, December 5, 2005
Government Press Release

The Hong Kong Civil Aviation Department (CAD) and the Civil Aviation Directorate of Transport Canada (TCCA) signed a Memorandum of Understanding (MOU) known as the "Technical Arrangement on Aviation Maintenance", on mutual recognition of approvals of maintenance organisations in Hong Kong and Canada today (December 5) in Hong Kong.

Before they are allowed to maintain components of aircraft registered in a country, maintenance organisations are required to obtain approval from the aviation authority of that country and be subjected to the authority's regulations, audits and standards. The MOU allows the civil aviation authorities of Hong Kong and Canada to recognise each other's approvals of maintenance organisations to maintain aircraft components. This means that Hong Kong-based maintenance organisations can maintain aircraft components for Canada-registered aircraft without seeking additional approval from the Civil Aviation Directorate of Transport Canada (TCCA). Likewise, maintenance organisations based in Canada can maintain aircraft components for Hong Kong-registered aircraft.

The Acting Assistant Director-General of Civil Aviation, Mr Tsang Yuk-poon, said, "Partnership between civil aviation authorities through mutual recognition will reduce duplication of approval and audit work by the authorities thus maximising the utilisation of resources of both the regulators and the industry. In the end, such mutual recognition will improve the quality of aircraft maintenance through the use of common airworthiness standards."

Hong Kong made similar mutual recognition arrangements on aircraft maintenance with the Mainland and Macau and with Singapore in 2002 and 2004 respectively. The extension of the mutual recognition arrangement to other countries is well supported by the aviation industry.

Air Hong Kong to seek go-ahead to expand China services
Cathay Pacific's all-cargo unit says it expects progress at next round of air service agreement talks
6 December 2005
South China Morning Post

Air Hong Kong will ask the government to secure the carrier rights to fly to China in the next round of bilateral negotiations which are expected just after Lunar New Year, a senior executive said yesterday.

The all-cargo carrier, 60 per cent owned by Cathay Pacific Airways, bases its regional fleet of aircraft from DHL Express's central Asia hub at the airport and only flies to Shanghai using rights won by Cathay in the last round of negotiations.

"Our aim is to gain designation for Air Hong Kong to operate directly into the mainland and expand our service network to new locations in China," said Ross Allen, senior vice-president - aviation (Asia Pacific) for DHL Express. "We are expecting some progress on that front during the next round of [air service agreement] talks."

Cathay will also be hoping the government can wrest elusive passenger rights to Shanghai from the next round of talks, after the authorities last year lifted the "one carrier, one route" restriction.

Theoretically, it could begin services as early as the winter schedule next year.

No formal date has been set for the next round of talks and Air Hong Kong has yet to submit an official wish list to the government, according to an official from the Economic Development and Labour Bureau.

"[Air Hong Kong] talks to us all the time on all matters relating to their operations," said Wilson Fung Wing-yip, a senior negotiator for the bureau.

"We would not act until they have submitted firm plans to us. Up to this moment, no such plans have been received."

Mr Fung said he had regular contact with his counterparts on the mainland who were "preparing for the next round".

Air Hong Kong, which would also need to apply to the Air Transport Licencing Authority for route rights, currently owns six of the eight mid-size Airbus freighters it operates from Chek Lap Kok.

The wholly owned fleet will expand to eight by the middle of next year. But the carrier declined to take up options on the ninth and tenth aircraft from the original deal.

Mr Allen said DHL, which posted group-wide sales of {euro}3.4 billion ($30.8 billion) in the Asia-Pacific region last year, planned to launch new services to north Asia next year, with Japan, Korea and China all a possibility.

Regarding DHL's China plans, he said: "Our plan is to operate to as many mainland cities as is commercially viable. We have multiple locations we will be looking at serving over the next three to five years, so it wouldn't be restricted to the Big Three [cities]."

In October, DHL express agreed to reserve space on a five-times weekly service to Los Angeles operated by Malaysian all-cargo carrier Transmile.

DHL reserves about 30 per cent of the outbound space on the 80-tonne capacity freighter owned by Transmile, which also has a service through Shanghai to the US.

Hong Kong Express Announces Hong Kong - Ningbo Twice Daily
Bloomberg
3 December 2005

Hong Kong Express Airways has announced that it will begin flying this month to the eastern Chinese city of Ningbo to meet rising travel demand. The airline will operate two daily flights between Hong Kong and Ningbo starting Dec. 13 using Embraer 170 aircraft, which can carry 70 to 80 passengers.

Tuesday December 6, 7:55 PM
Virgin to double daily London flights to Hong Kong

HONG KONG (AFP) - Virgin Atlantic will double its daily service between London and Hong Kong next year, billionaire airline boss Richard Branson said as part of an aggressive expansion in China.

"Our flights are leaving Hong Kong packed and we just don't have enough seats so we will go double daily flights from autumn of next year," Branson said Tuesday.

"I think the way Hong Kong is developing those flights will be very busy as well," Branson added.

Virgin, which has been flying to Hong Kong for 11 years, flies daily flights from London's Heathrow airport.

The airline recently became the first airline to fly a daily service to Shanghai.

Virgin is also about to launch services to Dubai, Jamaica, Barbados and increase frequencies to Cape Town.

06 December 2005
Dragonair Named Asia Pacific Cargo Airline of the Year
Corporate Press Release

(HONG KONG) Dragonair has been named Cargo Airline of the Year in the Centre for Asia Pacific Aviation's Awards for Excellence 2005 for "having the greatest impact on the development of the air cargo industry in the region".

"This is a great honour for Dragonair Cargo and all the staff who work so hard to make it such a success," Dragonair's General Manager for Cargo, Albert Yau, said after receiving the award at a Gala Dinner in Kuala Lumpur attended by many of the biggest names in the aviation industry.

"Dragonair identified an opportunity for dedicated cargo services from the Mainland via Hong Kong five years ago, and since then we have gone from strength to strength. We now operate six freighters to 10 destinations on three continents. And we're only just getting started."

The Centre for Asia Pacific Aviation (CAPA) Awards for Excellence select the "outperformers" of the industry for their strategic leadership, innovation and influence in Asia Pacific's aviation industry.

CAPA – a leader in strategic consulting services, aviation conferences, airline news and aviation publications based in Sydney, Australia – said Dragonair had won the award because in five years it "has quickly and methodically expanded the operation to encompass six dedicated freighters and the unit now accounts for over 40% of total revenue".

It noted that the "growth has been built on the phenomenal rise in China's trade with its partners worldwide and prudent network and capacity decisions. Significantly, the carrier this year launched dedicated freight services to the US (New York)..."

Dragonair Names Airbridge International Cargo Agent in Canada
5 December 2005
Canadian Sailings

Airbridge International Inc. has been appointed cargo sales and service agent for Dragonair in Toronto and Montreal.

Airbridge International is responsible for promoting Dragonair's cargo sales activities and representing the carrier's commercial interests in the two regions.

Operating across Asia for the past 20 years, Dragonair's network now stretches far into the heart of mainland China. From a single wet-leased B747-200 in 2000, its freighter fleet now comprises five B747 freighters and one Airbus-300B freighter, with plans to double the all-cargo fleet to 10 by the end of 2008, which would give Dragonair one of the fastest growing air cargo operations in Asia.

From North America, Dragonair now operates three times a week with B747 freighters from New York (JFK) to Hong Kong, with departures on Monday, Thursday and Saturday. Regular overnight trucking service is guaranteed from Canada for connections at JFK. Dragonair said plans are already in place for further service from North America in the near future.

The all-cargo fleet network also covers Taipei, Kansai, Pundong, Xiamen and Nanjing in Asia, Amsterdam and Frankfurt in Continental Europe, and Manchester in the United Kingdom.

From its hub at Hong Kong International Airport, Dragonair also operates a passenger fleet, which comprises A330, A321 and A320 aircraft. The airline's passenger network covers 31 destinations across the Asia-Pacific region, including 22 in mainland China.

Airline general sales and service agent Airbridge International has offices in Toronto (Pearson International and mid-town) and Montreal as well as at other locations in Canada.

HK main air cargo terminal Nov volume up 7.5 pct

HONG KONG, Dec 8 (Reuters) - Hong Kong's main air cargo terminal said it handled 7.5 percent more cargo in November than the same month last year as export volumes hit a monthly record.

Hong Kong Air Cargo Terminals Ltd. (HACTL), 25 percent owned by Jardine Matheson Holdings and 20 percent by Swire Pacific Ltd. , handled 226,314 tonnes of cargo in November, it said in a statement on Wednesday.

For the first 11 months of the year, it moved a total of 2.2 million tonnes, up 7.2 percent from the same period last year.

Export volume rose 6.4 percent to a record 135,774 tonnes in November and import volume grew 6.3 percent to 57,979 tonnes.

Growth in the transhipment sector remained strong, rising 15.3 percent in November from the same month last year to 32,561 tonnes.

港客曼谷住「鬼酒店」
靈異古怪嚇親人 向天鷹航空索償
08/12/2005

泰國天鷹航空今年八月一班由泰國曼谷飛往香港的航班，因為機件故障要延誤起飛，部分乘客滯留曼谷期間聲稱被安排入住一間「鬼酒店」，並遇到怪異事件，包括電視無法關上、有人不停敲房門等，其中三十名乘客自掏腰包另購機票返港，昨日為此聯袂入稟小額錢債審裁處，向航空公司追討損失。

提出申索的三十名男女乘客，昨日派出八名代表，向今年初才投入香港航空服務市場的泰國天鷹航空有限公司追討購買機票、長途電話費等損失，雙方最終達成庭外和解，申索人共獲賠款六萬多元。

事件起因是泰國天鷹航空一班原定今年八月二十八日由曼谷飛往香港的航班，因機件故障要臨時取消，部分乘客獲安排入住曼谷市郊一間酒店，乘客翌日下午接獲通知，飛機要到八月三十日凌晨才起飛。

「有想睇埋套片」
其中三名申索人莫志偉、曹小姐及胡國華昨在庭外大吐苦水，形容被安排入住的酒店非常不堪，曾任警員的莫志偉更大談恐怖經歷，他聲言當日憑經驗已感到酒店有靈界物體，但為免舟車勞頓，遂與愛妻入住「鬼酒店」，豈料當晚便有古怪事情發生，如他看電視片時曾經用遙控器欲關機，怎料用盡方法都未能關機，直到電視片播放完畢才能把電視關上，他直言「有想睇埋套片先」。

莫志偉續稱，事後從其他同被安排住在「鬼酒店」的乘客口中，得悉他們也遇上怪事連連，包括房門外有男人不停敲門，亦有女士聽到房門外徹夜發出連串泰語，開門卻不見影蹤。曹小姐補充，之前已曾聽聞該酒店傳出拖鞋凌空「周圍飛」的怪異事件，故當晚她寧願自費入住其他酒店。

曹小姐續稱，當初「貪新鮮」乘坐泰國天鷹的航班，怎料遇上不愉快經歷，而返港後得悉不少同行乘客另有餘波，包括一對年老夫婦因身無分文滯留曼谷要求助中國領事館，她為取回公道而組織乘客多番投訴索償但不果，最終決定入稟小額錢債審裁處。

泰國天鷹航空有限公司代表總經理蘇澤流昨在庭外指，今次飛機引擎故障是突發事件，公司所有飛機均經過完善檢驗，當日航班逾三百名乘客，事發後已獲提供入住三星級酒店。蘇又指大部分乘客均獲妥善安排及賠償。 案件編號：SCTC 67597-03 http://the-sun.orisun.com/channels/img/endmarker.gif

Hactl to surpass last year's record for handling international freight
Company moved 2.21 million tonnes in first 11 months, up 7.2pc on a year ago
8 December 2005
South China Morning Post

Hongkong Air Cargo Terminals Ltd (Hactl) will set a new mark for handling international freight volumes today, raising the bar on an annual world record it has held for the past eight years.

Hactl moved 2.21 million tonnes of cargo in the first 11 months, up 7.2 per cent year on year, putting it on pace to surpass last year's record of 2.26 million tonnes.

"We are set to break last year's tonnage record [today]," said Lilian Chan, general manager marketing. "The sustained volume growth reflects the strength of Hong Kong as the air cargo hub in the region."

The news will come as a relief to the government in a year when Hong Kong's declining fortunes in the maritime trade sector have become glaringly apparent.

But while Hactl and the airport in general are doing brisk trade this year, there are signs of weakness developing in the air cargo industry at home and abroad.

The expansion of global air cargo volumes, which are seen as a three-month leading indicator of economic trends, slowed to 2.6 per cent over the first 10 months, according to the International Air Transport Association (Iata).

With jet fuel prices hovering near record highs, volume growth fell well short of the capacity expansion of 6.5 per cent put on by Iata's 265 member airlines, shrinking their collective pricing power.

According to Airports Council International, which compiles data for 1,600 airports worldwide, air cargo volumes grew a comparative 2.4 per cent in the first 10 months; international freight fared only marginally better at 3.2 per cent.

Both accounts fall well short of forecasts published by experienced industry bodies such as Iata, which called for 6 per cent growth this year, and US-based aircraft manufacturer Boeing, which expects an average 6.2 per cent to 2024.

The impact of the high price of oil slowed consumer demand for high-value products which typically move by air, such as fashion apparel and mobile phones.

Locally, the airport's trade imbalance widened in the first 11 months, with export volumes outstripping imports 2.05 to one this year, against 1.84 to one last year.

This may not directly affect the commercial fortunes of Hactl in the short term but it makes it more difficult for the airlines to turn a profit, which could dampen the terminal's prospects longer term. More worrying for Hactl will be the emergence of terminals in Guangdong, which look increasingly capable of luring away trade and customers as the airline networks that support their facilities grow.

DHL Express, which has more than US$200 million invested in a dedicated express hub at the airport, last month opened a gateway at Guangzhou's Baiyun airport.

"There are opportunities to move some of our traffic from the Pearl River Delta through that facility," Ross Allen, senior vice-president, aviation (Asia Pacific), said. "So even though most of the traffic moves through Hong Kong, as the frequencies build up at [Baiyun], we will obviously be looking at air services in a direct sense."

港聯空中快線﹕本地直升機服務下月停辦
12月 9日 星期五 05:05 更新

【明報專訊】本港唯一提供散客直升機觀光服務的「空中快線」宣布，由於租金高漲，經營成本上升，決定明年1月起停辦本地直升機服務，改為專注發展跨境業務。但為回饋市民，除於本月中起推出每位減費150元的優惠外，同時打算讓200名弱勢社群人士免費乘直升機暢遊維港上空。

200名弱勢社群可免費遊維港

空中快線所屬的港聯直升機（香港）有限公司營業及市務部主管張應財表示，現時日間散客每位收800元，夜間收1088元，為回饋市民，計劃於本月 15日起提供每人150元的減價優惠，而包機則減500元。同時，打算撥出200個名額，讓弱勢社群人士，如小朋友、傷殘人士等，可免費乘坐6分鐘直升機，於日間欣賞維港美景。有興趣的社團，可致電2108 9913或2108 9979查詢。

空中快線發言人坦言，自2002年推出本地直升機服務，包括觀光、包機、航拍、高空攝影及吊掛工程等後，多年來均虧蝕，加上西九龍直升機場及啟德飛機庫因租約與政府談不攏，因此決定稍後遷出，而提供本地直升機服務的兩架AS350-B3小松鼠型號直升機，亦考慮出售。日後公司將致力發展跨境業務，希望可開拓珠三角市場。他透露，已與江門市政府簽訂備忘錄，待兩地談妥邊檢等問題便可開辦服務。

本港現有兩家商用直升機公司，但只有何鴻燊旗下的港聯航空提供散客觀光服務，另一間由米高嘉道理擁有的直升機服務（香港）有限公司，但只提供包機服務。

Wednesday December 14, 9:08 AM
HK PRESS: Oasis HK Airlines May Seek Listing In 2006

HONG KONG (Dow Jones)--Oasis Hong Kong Airlines Ltd. said it may list shares next year to raise HK$10 billion for its acquisition of aircraft, the Ming Pao Daily reports.

The budget airline recently received approval from Hong Kong's Air Transport Licensing Authority to operate scheduled passenger flights from Hong Kong to six cities in Europe and the U.S.

The new carrier earlier said it plans to launch services to European cities by the end of 2005, with Berlin, Vienna, Cologne and Milan cited as possible locations. Service to the North American market could come in 2006.

The airline will operate a small fleet of Boeing 747-400 or Airbus A340-300 aircraft, starting with three planes and expanding to five within two years.

Investors in the company include Raymond Lee, a property developer who lives in Boston, and Allan Wong, chairman of local electronics firm VTech Holdings Ltd. (0303.HK).

Newspaper Web site:http://www.mingpao.com

明報專訊】計劃於明年中首航的甘泉航空主席李卓民透露，為拓展業務，正積極研究多項融資方案，包括極有可能籌備明年上市，估計集資金額將過百億元，資金主要用作購置飛機，預計未來5年，公司將購買最少25架長途客機。

雖然甘泉航空尚未營業，但仍有機會在港交所上市。港交所(0388)近年修改上市規則，新上市公司市值若超過40億元，可豁免有三年盈利紀錄的要求。

機隊包括波音787

主攻長途廉價航班的甘泉航空主席李卓民透露，明年中將首航來往香港及倫敦的航線，並計劃未來5年內，開辦50至60個直航航點。他指出，由於香港至美國東岸航線需要較新型的長途客機，故計劃購買至少25架長途客機，可能購置的型號包括波音的787系列，該客機最快可於08年付運，每架造價約值10億元。

至於其餘航點，甘泉亦會租賃客機營運，目前甘泉已承租5架747客機，李卓民指每架客機便需要聘用72名機組人員，故明年1月後，公司會開始招聘近400員工，當中包括30至40名市場推廣，管理人員等。

明年1月後開始聘400員工

各項計劃都涉及龐大資金，故李卓民表示正研究多項融資方案，當中包括於本港上市，相信一旦落實，集資規模將過百億元。

用二線機場升降減成本

面對國際油價高企，李卓民認為油價對全球航空都是一個重大挑戰，但他認為危中必有機，只要控制成本得宜，降低票價，便可令原本無法負擔長途票價的消費者，乘搭飛機，為航空業製造大量的需求。

他指傳統航空公司的一站式服務，可為客戶提供方便，但附帶的，卻是較高的經營成本，例如要與其他航空公司的系統連結，產生大量的行政工作及高昂的成本，加上為遷就轉機班次的時間，亦降低航機的使用率及升降次數。而甘泉的經營方式是採取點對點直航服務，既可免除上述提及的成本外，亦能為搭客提供直接的航線服務。另外，盡量採用二線機場作為升降點，都有助降低經營成本。

李指，由於成本較低，以往一些因為客量較少而未有航空公司經營的航點，該公司亦能提供服務，且獲得利潤。所以該公司將會積極擴充航點。

指傳統航空搞廉航未見成功

對於該公司的經營模式會否被傳統航空公司借鏡，而進入同一市場競爭，李卓民認為傳統公司要經營廉價航空，未見有成功例子，除了是要減省成本要面對員工的壓力外，亦可能因而令公司原有的高價客源減少，倒招來損失。他又認為甘泉與傳統航空公司，所針對的客源不同，相信不會有直接競爭。

有分析員便認為，甘泉以本港為基地經營廉價航空公司，將面對本港機場經營成本較高所影響，加上客源不同，相信甘泉的出現，對國泰(0293)的影響不大。

(明報記者盧嘉偉報道)

盼助所有港人環遊世界
2005年12月14日

【明報專訊】「希望全香港700萬人，各階層都能夠環遊世界，令下一代能擴闊視野。」就是這個理想，令從未沾手航空業的李卓民夫婦，創辦甘泉航空，走上艱辛的創業之路。

李卓民及其太太李黃慧恂以往主要於美國從事物業投資，包括購入整幢物業翻新再出租出售業務。「很多物業的確有其致命傷，但只要眼於優點，再包裝亦可有獲利的空間。」

油價高企，行業併購，市場對航空業的前景不免悲觀，正於此時候，李卓民夫婦回港創立甘泉航空，「人棄我取」似乎正引證二人以往的投資策略。

信仰指導創業 南區當牧師

他們現時要辦的是全球首間經營廉價長途航空公司，面對的挑戰實在相當巨大。為確實了解客戶的需要，兩夫婦更親身到德國，到倫敦的機場，實地考察當地機場情，落機到入境要步行多久，交通接駁如何。「你都不會去的地方，怎可以叫你的客人去﹖」因此兩夫婦選擇德國最寒冷時的二月啟程。

於本港南區一家教會擔任牧師的李卓民，與同樣是基督徒李太都承認信仰對兩人創業有相當重大的關係，李指宗教令他們有使命感，希望能為香港人做些事情。

Polar Air Cargo Returns One Hong Kong Frequency
13 December 2005
Aviation Daily

Atlas Air Worldwide Holdings subsidiary Polar Air Cargo returned to the U.S. Dept. of Transportation one U.S.-Hong Kong fifth-freedom cargo frequency that it used to operate between Hong Kong and Jakarta.

My nans been on about an airport.

Kaitack airport...is it a new airport or just a new name.


Also is it in new territories?

My nans been on about an airport.

Kaitack airport...is it a new airport or just a new name.


Also is it in new territories?
Kai Tak International was the old airport that closed in 1998. It was located in the heart of Kowloon and planes had to descend above the densely-populated residential areas before making a sharp turn to the runway. It was a major training airport for pilots since autopilot can't be programmed to land there. The new one at Chek Lap Kok replaced Kai Tak.

http://www.tdctrade.com/Photo/cms/article/shippers/36608.jpg

Hi hkskyline,

I heard the number of tourists of HKIA will be surpassed by some mainland cities, like Beijing or Shanghai........I wonder if it is correct.

Hi hkskyline,

I heard the number of tourists of HKIA will be surpassed by some mainland cities, like Beijing or Shanghai........I wonder if it is correct.
Are you talking about the composition of visitor arrivals? HKIA doesn't release statistics by country of origin / citizenship. The best I can do is to extrapolate based on visitor arrival statistics from the Hong Kong Tourism Board (much easier than going through each airline to find route statistics, which aren't always released to the public anyway).

Looking at Jan-June 2005 visitor arrival statistics from the HKTB,

Mainland China accounted for 53.6% of visitor arrivals at 5,883,791 while long-haul markets vary :
Europe, Africa, Middle East : 809,681 / 7.4%
Australia, New Zealand, South Pacific : 290,454 / 2.6%
The Americas : 751,792 / 6.8%

Thus I won't be surprised if about half of the passengers using HKIA would be mainlanders. However, we must consider that not all the mainland visitors fly into Hong Kong and Hong Kongers are major travellers ourselves and these trips are not recorded in HKTB's visitor statistics.

Actually, I mean the passenger flow of HKIA will be surpassed by some mainland airports this year.

According to the statistcis issued by HKIA, the passenger flow of HKIA increased by 6.2% only in November, the result is a little disappointed for me. Simultaneously, most of mainland airports recorded sharp increase..............That's why I wonder if they will surpass HKIA this year in terms of number of passengers.

By the way, do you think HK express airlines and Oasis HK can boost the passenger flow of HKIA at high rate?

Sorry for misleading you anyway!!!!!

In 2004 Beijing was only just behind Hong Kong for total passengers and growing even faster. The combined total of Shanghai Pudong and Hongqiao airports is also closing in (slightly behind Beijing). Hong Kong is disadvantaged by the fact that Chinese need a visa to go there - even if it's failry easy to obtian - and by the fact that Cathay Pacific is so restricted from operating mainland Chinese services. I know they codeshare with Dragonair but it puts Hong Kong at a major disadvantage all the same....

In 2004 Beijing was only just behind Hong Kong for total passengers and growing even faster. The combined total of Shanghai Pudong and Hongqiao airports is also closing in (slightly behind Beijing). Hong Kong is disadvantaged by the fact that Chinese need a visa to go there - even if it's failry easy to obtian - and by the fact that Cathay Pacific is so restricted from operating mainland Chinese services. I know they codeshare with Dragonair but it puts Hong Kong at a major disadvantage all the same....
HKIA was never intended to be a regional hub airport for all of China. It doesn't make sense geographically to connect in Hong Kong to Shanghai or Beijing from Europe or North America. Beijing and Shanghai are large enough cities to sustain their own direct flights. Foreign carriers are increasing their frequencies to China direct, but not at the expense of Hong Kong traffic. One example is Finnair, which is keeping its Hong Kong frequencies while launching Guangzhou flights. BA's HK services are not cut because they desire to fly to more mainland cities.

Rather, the key to Hong Kong's success is increased tourism, especially with the relaxed visa requirements. As more mainlanders visit Hong Kong, HKIA traffic will definitely benefit, and the growth rates show just that.

Year to date International Passenger Traffic (From ACI web-site)


January - August 2005



Last update: November 14 2005

International Passengers

Airport Total %Chg

1 LONDON, GB (LHR) 40 940 398 1.4

2 PARIS, FR (CDG) 32 802 863 5.1

3 FRANKFURT, DE (FRA) 29 925 947 3.3

4 AMSTERDAM, NL (AMS) 29 525 386 3.7

5 HONG KONG, CN (HKG) 26 321 000 11.3

6 SINGAPORE, SG (SIN) 19 995 135 7.9

7 LONDON, GB (LGW) 19 711 516 5.8

8 TOKYO, JP (NRT) 17 858 893 3.0

9 BANGKOK, TH (BKK) 17 413 198 3.9

10 SEOUL, KR (ICN) 17 268 784 11.0

11 DUBAI, AE (DXB) 15 783 112 13.8

12 MADRID, ES (MAD) 14 775 465 10.7

13 LONDON, GB (STN) 12 979 679 8.0

14 TAIPEI, TW (TPE) 12 967 676 9.5

15 MUNICH, DE (MUC) 12 951 490 9.1

16 MANCHESTER, GB (MAN) 12 695 785 6.4

17 NEW YORK, NY (JFK) 12 620 336 6.8

18 COPENHAGEN, DK (CPH) 12 114 512 3.8

19 LOS ANGELES, CA (LAX) 11 988 562 7.4

20 DUBLIN, IE (DUB) 11 925 014 7.6

21 TORONTO, ON, CA (YYZ) 11 716 054 7.0

22 ZURICH, CH (ZRH) 11 448 715 4.7

23 MILAN, IT (MXP) 11 043 058 9.1

24 ROME, IT (FCO) 10 945 726 8.6

25 BRUSSELS, BE (BRU) 10 874 994 3.8

26 PALMA DE MALLORCA, ES (PMI) 10 741 575 4.4

27 VIENNA, AT (VIE) 10 096 223 7.8

28 MIAMI, FL (MIA) 9 862 385 0.8

29 ANTALYA, TR (AYT) 9 843 830 18.4

30 SHANGHAI, CN (PVG) 9 562 034 20.3

Airports participating in ACI's Monthly Traffic Statistics Collection. Results are preliminary.
International Passengers. traffic performed between the designated airport and an airport in another country/territory.

Year to date International Passenger Traffic (From ACI web-site)


January - August 2005



Last update: November 14 2005

International Passengers

Airport Total %Chg

1 LONDON, GB (LHR) 40 940 398 1.4

2 PARIS, FR (CDG) 32 802 863 5.1

3 FRANKFURT, DE (FRA) 29 925 947 3.3

4 AMSTERDAM, NL (AMS) 29 525 386 3.7

5 HONG KONG, CN (HKG) 26 321 000 11.3

6 SINGAPORE, SG (SIN) 19 995 135 7.9

7 LONDON, GB (LGW) 19 711 516 5.8

8 TOKYO, JP (NRT) 17 858 893 3.0

9 BANGKOK, TH (BKK) 17 413 198 3.9

10 SEOUL, KR (ICN) 17 268 784 11.0

11 DUBAI, AE (DXB) 15 783 112 13.8

12 MADRID, ES (MAD) 14 775 465 10.7

13 LONDON, GB (STN) 12 979 679 8.0

14 TAIPEI, TW (TPE) 12 967 676 9.5

15 MUNICH, DE (MUC) 12 951 490 9.1

16 MANCHESTER, GB (MAN) 12 695 785 6.4

17 NEW YORK, NY (JFK) 12 620 336 6.8

18 COPENHAGEN, DK (CPH) 12 114 512 3.8

19 LOS ANGELES, CA (LAX) 11 988 562 7.4

20 DUBLIN, IE (DUB) 11 925 014 7.6

21 TORONTO, ON, CA (YYZ) 11 716 054 7.0

22 ZURICH, CH (ZRH) 11 448 715 4.7

23 MILAN, IT (MXP) 11 043 058 9.1

24 ROME, IT (FCO) 10 945 726 8.6

25 BRUSSELS, BE (BRU) 10 874 994 3.8

26 PALMA DE MALLORCA, ES (PMI) 10 741 575 4.4

27 VIENNA, AT (VIE) 10 096 223 7.8

28 MIAMI, FL (MIA) 9 862 385 0.8

29 ANTALYA, TR (AYT) 9 843 830 18.4

30 SHANGHAI, CN (PVG) 9 562 034 20.3

Airports participating in ACI's Monthly Traffic Statistics Collection. Results are preliminary.
International Passengers. traffic performed between the designated airport and an airport in another country/territory.

any figures per airport, all passengers not only international ? the first US airport is only 17th whereas they are at first places when you take into account all passengers

HKIA was never intended to be a regional hub airport for all of China. It doesn't make sense geographically to connect in Hong Kong to Shanghai or Beijing from Europe or North America. Beijing and Shanghai are large enough cities to sustain their own direct flights. Foreign carriers are increasing their frequencies to China direct, but not at the expense of Hong Kong traffic. One example is Finnair, which is keeping its Hong Kong frequencies while launching Guangzhou flights. BA's HK services are not cut because they desire to fly to more mainland cities.

Rather, the key to Hong Kong's success is increased tourism, especially with the relaxed visa requirements. As more mainlanders visit Hong Kong, HKIA traffic will definitely benefit, and the growth rates show just that.It doesn't have to make perfect sense geographically. Hong Kong is not so much further from London or Los Angeles than Beijing or Shanghai. From Britain, Hong Kong is a conecting hub to Australia, Taiwan, and the Philippines. From United States it can connect to inland China and mainland SE Asia. However it could also be a connections hub to inland China from Europe given that all the other cities enjoying direct flights from Europe (Beijing, Shanghai, and Guangzhou) are also lined along the east coast of China. If the European businessman's final destination was, say Chengdu or Chongqing, he would be going back on himself from any of these hubs. From London, Hong Kong would be preferred as a China transfer hub over Beijing or Shanghai, because there are nine direct flights per day from London to Hong Kong compared to just two or three per day to Shanghai and even less to Beijing.

It doesn't have to make perfect sense geographically. Hong Kong is not so much further from London or Los Angeles than Beijing or Shanghai. From Britain, Hong Kong is a conecting hub to Australia, Taiwan, and the Philippines. From United States it can connect to inland China and mainland SE Asia. However it could also be a connections hub to inland China from Europe given that all the other cities enjoying direct flights from Europe (Beijing, Shanghai, and Guangzhou) are also lined along the east coast of China. If the European businessman's final destination was, say Chengdu or Chongqing, he would be going back on himself from any of these hubs. From London, Hong Kong would be preferred as a China transfer hub over Beijing or Shanghai, because there are nine direct flights per day from London to Hong Kong compared to just two or three per day to Shanghai and even less to Beijing.It doesn't make sense for a passenger from Europe to fly into Hong Kong and then head back north to Beijing or Shanghai. The same goes to North American passengers. However, Hong Kong will be an appropriate place to transit for flights to Southeast Asia and Australia due to geography. The mainland-bound transit traffic is not the market Hong Kong is designed for because the day will come when there is enough capacity to handle direct flights between Europe / North America and China. Hence it is not worth spending the money to lure these passengers. Mainland competitors that offer direct services are far cheaper than Cathay Pacific. Rather, direct point-to-point traffic, such as mainland tourism, is far more profitable to the entire economy. The transit market will only be sustainable for secondary cities that can't sustain direct flights. Guangzhou was one of them, but with a new airport, residents now have a choice to head to Hong Kong or fly out from home.

Hong Kong's CR Airways to sign aircraft purchase deal with Boeing

HONG KONG, Dec 19 (AFP) - CR Airways Ltd said it will sign an agreement tomorrow to buy aircraft from Boeing Co which will complement two small 76-seater airplanes that the company is currently using.

A company spokeswoman declined to give the value of the purchase or the number of planes to be ordered.

The South China Morning Post reported, without citing sources, that CR Airways plans to buy 30 B737-800s and 10 B787s for some 3.0 billion US dollars.

CR Airways, Hong Kong's third carrier, obtained a government license in June to operate short-range flights to regional cities.

Business tycoon Li Ka-shing's family, which controls Cheung Kong and Hutchison Whampoa, has been negotiating to buy a stake in the airline.

CR expands fleet amid doubts over traffic rights
19 December 2005
South China Morning Post

CR Airways, which began scheduled flights in January, will invest more than US$3 billion on 40 Boeing aircraft as it expands services to the mainland but the potential acquisition by Hainan Airlines has put its traffic rights in jeopardy.

CR Airways would sign a memorandum of understanding with Boeing to buy 30 B737-800s and 10 B787s tomorrow, sources close to the deal said.

But government sources said Hainan Airlines, which is in talks to buy 60 per cent of CR Airways, would struggle to acquire a majority stake without forfeiting CR Airways' routes.

The regulatory body is consulting legal advisers.

"The case is still under consideration," Deputy Secretary for Economic Development Wilson Fung Wing-yip said.

According to Boeing's price list, the average prices of B787s and B737-800s would be US$130 million and US$66 million each, pushing the aggregate contract price of the 40 aircraft to US$3.28 billion without any discount.

This is an enormous investment for CR Airways considering that Cathay Pacific Airways has just secured the biggest aircraft deal in its history with a US$4.35 billion purchase of 19 aircraft.

But the commercial decision to take advantage of the mainland's growing numbers of air travellers will be in vain if the Economic Development and Labour Bureau decides to deprive CR Airways' qualification as a designated Hong Kong airline and its traffic rights.

Hainan Airlines, which began life as a charter flight operator in 2001, and the bureau are believed to be locked in a question-and-answer process over the stake bid.

To qualify as a Hong Kong designated airline, it must be incorporated in Hong Kong, its principal place of business must be in Hong Kong, and it must be managed and controlled from Hong Kong. If Hainan Airlines gets a controlling stake, CR Airways will have violated the last two criteria.

It is hard to see how CR Airways will finance the Boeing deal, given its existing shareholder structure and business scope. The carrier is solely owned by Robert Yip Kwong and has an outstanding convertible bond with an aggregate amount of US$140 million held by Yu Ming Investments.

The carrier operates three Bombardier jets of about 70 seats each and flies to six second-tier mainland cities.

Sources speculated CR Airways could hardly place an order with Boeing, let alone pay the bill without the help of Hainan Airlines.

Hainan Airlines, the mainland's fourth-biggest, was one of seven mainland operators selected to share in as many as 150 B737s that Premier Wen Jiabao agreed to buy from Boeing last month.

There is also industry speculation that the 30 B737-800s targeted by CR Airways are actually among the batch signed up by Mr Wen last month. Hainan Airlines may have just used CR Airways' name to buy them in order to save on the substantial mainland import tax.

Sources said CR Airways' formal purchase agreement was scheduled to be signed next month.

It doesn't make sense for a passenger from Europe to fly into Hong Kong and then head back north to Beijing or Shanghai. The same goes to North American passengers. However, Hong Kong will be an appropriate place to transit for flights to Southeast Asia and Australia due to geography. The mainland-bound transit traffic is not the market Hong Kong is designed for because the day will come when there is enough capacity to handle direct flights between Europe / North America and China. Hence it is not worth spending the money to lure these passengers. Mainland competitors that offer direct services are far cheaper than Cathay Pacific. Rather, direct point-to-point traffic, such as mainland tourism, is far more profitable to the entire economy. The transit market will only be sustainable for secondary cities that can't sustain direct flights. Guangzhou was one of them, but with a new airport, residents now have a choice to head to Hong Kong or fly out from home.I never said they would connect to Beijing or Shanghai. You can already fly direct to those cities from Europe and America so there would be no point. I am thinking of all the other smaller or less significant Chinese cities that do not have direct flights from Europe or America. I made that perfectly clear in my previous post. Hong Kong may be more expensive, and it may be further geographically, but business travellers don't care about the relatively modest extra expenditure nor even the extra time in the air. If they want to get to Chengdu or Chongqing they're going to have to backtrack no matter which China hub they use - be it Hong Kong, Shanghai, Beijing, or Guangzhou. And the fact that there are so many flights from, say, London to Hong Kong (nine per day as opposed to two or three per day to Shanghai and even less to Beijing), means that Hong Kong does have hub potential for China. It means that a London businessman can leave his desk in London at any time of day and there will always be a flight about to depart for Hong Kong from where he can catch his connecting flight. If he has to connect in Beijing or Shanghai then he may be limited to just one or two departures per day from London. Businessmen, especially in the financial industry, are prepared to pay for this kind of flexibility.

CAD grants Certificate of Airworthiness to special freighter
Monday, December 19, 2005
Government Press Release

The Civil Aviation Department (CAD) today (December 19) issued a Certificate of Airworthiness to a Boeing 747-400 special freighter, which is the first Cathay Pacific Airways’ B747-400 freighter converted from a passenger aircraft.

At a ceremony held in the Taikoo (Xiamen) Aircraft Engineering Company Limited (TAECO) in Xiamen today, Director-General of Civil Aviation Mr Norman Lo said that there were a number of “firsts” achieved in this event: the first conversion of a Boeing 747-400 passenger aircraft into a freighter; the first time that such a conversion was carried out outside the Boeing facility; and the first time that the certification flight tests were conducted outside the United States.

Mr Lo highlighted that the modification of the passenger aircraft to freighter was performed by TAECO in Xiamen. As a regulatory authority, CAD had been monitoring the progress with a view to ensuring that high standards of workmanship, airworthiness and safety were achieved. During the conduct of the intensive certification flight tests in Hong Kong airspace, the Hong Kong Air Traffic Control Centre worked closely with the Boeing flight test team to ensure the smooth completion of the rigorous flight tests within the busy Hong Kong airspace.

On the same occasion, TAECO also received an approval for its new hangar – the fourth hangar of TAECO, which is capable of accommodating two aircraft, including an Airbus A380. Prior to the issue of the approval, a joint audit of the new facility was conducted to the satisfaction of CAD, the General Administration of Civil Aviation of China, Singapore Civil Aviation Authority, United States Federal Aviation Administration, Japan Civil Aviation Bureau and United Kingdom Civil Aviation Authority. As this new hangar meets the regulatory requirements of the participating aviation authorities, it will come into service this month (December 2005).

I never said they would connect to Beijing or Shanghai. You can already fly direct to those cities from Europe and America so there would be no point. I am thinking of all the other smaller or less significant Chinese cities that do not have direct flights from Europe or America. I made that perfectly clear in my previous post. Hong Kong may be more expensive, and it may be further geographically, but business travellers don't care about the relatively modest extra expenditure nor even the extra time in the air. If they want to get to Chengdu or Chongqing they're going to have to backtrack no matter which China hub they use - be it Hong Kong, Shanghai, Beijing, or Guangzhou. And the fact that there are so many flights from, say, London to Hong Kong (nine per day as opposed to two or three per day to Shanghai and even less to Beijing), means that Hong Kong does have hub potential for China. It means that a London businessman can leave his desk in London at any time of day and there will always be a flight about to depart for Hong Kong from where he can catch his connecting flight. If he has to connect in Beijing or Shanghai then he may be limited to just one or two departures per day from London. Businessmen, especially in the financial industry, are prepared to pay for this kind of flexibility.
Then another problem arises because secondary cities won't get frequent flights so even if the European businessman is willing to pay, he'll still need to wait in a hub, whether it's Beijing, Shanghai, or Hong Kong. Given there are still restrictions on the number of flights from Hong Kong to the mainland pending more a more liberal air services agreement, Hong Kong may not be the number 1 choice even for the secondary cities. It really depends on the routing, and a hope that the Europe-Asia flight is not delayed such that the connecting passenger will miss the last flight of the day to the mainland.

The bottleneck is not getting to Asia, but how to get from an Asian hub to a secondary city.

^ OK fair enough. I hadn't realised that China restricted the number of mainland flights from Hong Kong. The Chinese authorities seem to be deliberately restricting the development of Hong Kong as an aviation hub. :no:

^ China negotiates bilateral air service agreements with all countries and territories. Hong Kong is not excluded from that regulatory restriction.

HK's CR Airways To Buy 40 Boeing Jets
20 December 2005

HONG KONG (AP)--Hong Kong's CR Airways Ltd. signed a preliminary agreement to acquire 30 Boeing B737-800s and 10 B787 Dreamliners that could be delivered in the next five years, the airline and aircraft maker said Tuesday.

'This move will surely enable CR Airways to develop its air routes and strengthen Hong Kong's airline industry,' the carrier said in a Chinese-language news release.

The total price for the planes was about $3 billion, said Mark Hooper, a Boeing Co. (BA) spokesman.

The signed deal was an agreement stating the airline's intention to acquire the planes, but the carrier did not say whether it would buy or lease the jets.

CR Airway's statement said that it planned to introduce the planes into its fleet in the next five years.

The airline, founded in 2001, flies scheduled and chartered flights to Southeast Asia and mainland China.

-Edited by Marissa Chew

CR Airways In Advanced Talks To Sell Stake
20 December 2005

HONG KONG (Dow Jones)--Hong Kong small-air-service operator CR Airways Ltd. Tuesday confirmed it is in advanced talks to be acquired by a new airline group featuring Chinese firm Hainan Airlines Co. (600221.SH).

"There are talks going on right now, but we aren't ready to make any announcements yet," CR Airways Chief Financial Officer Kelly Cheng told Dow Jones Newswires.

Cheng said the owner and chairman of CR Airways, Robert Yip, is considering selling a stake in the airline to Grand China Air, a newly formed company that will merge Shanghai-listed Hainan Airlines with its subsidiaries.

However, Cheng wouldn't say whether Yip will sell a majority stake in CR Airways to Grand China Air. "This is still a very sensitive issue," she said. "Right now, CR Airways is still 100% owned by Robert Yip."

She said any deal between CR Airways and Grand China Air will require Hong Kong regulatory approval.

But in a statement issued Tuesday, CR Airways referred to Hainan Air's chairman, Chen Feng, as chairman of CR Airways, while Yip as the executive vice chairman. The company's spokesperson declined to comment on the apparent changes in its management.

The talks with Grand China Air continue as CR Airways signed a preliminary agreement Tuesday to acquire 30 Boeing Co. (BA) B737-800s and 10 B787 Dreamliners that could be delivered in the next five years. Currently, the airline operates three Bombardier Inc. (BBD.SV.B.T) regional jets on routes from Hong Kong to China and Southeast Asia.

The signed deal was an agreement stating the airline's intention to acquire the planes, but CR Airways didn't say whether it would buy or lease the jets, which have a list price of about US$3 billion, a Boeing spokesman said.

Cheng said CR Airways has rights to fly to 48 destinations in China and Southeast Asia from its base in Hong Kong.

Hainan Airlines Group, the parent of China's fourth-largest carrier by revenue, in October obtained approval by the country's civil aviation regulator to form Grand China Air by merging Hainan Airlines with subsidiaries Xinhua Airlines, Changan Airlines and Shanxi Airlines.

Hainan Airlines is 14.8%-owned by American Aviation Ltd., a company backed by financier George Soros.

In October American Aviation injected US$25 million into Hainan Air as part of the US$617 million needed for its reorganization. The balance was paid by domestic strategic investors, according to Chinese state media reports.

Hainan Air's Chen has said he hopes to list Grand China Air on the Hong Kong stock exchange next year.

-By Jeffrey Ng, Dow Jones Newswires

^ China negotiates bilateral air service agreements with all countries and territories. Hong Kong is not excluded from that regulatory restriction.Yes but it should be. Hong Kong should not be treated as an outsider.

I think most of 737-800 and 787 purchased by CR Airways will be eventually leased to Hainan Airlines. I don't think CR Airways will expand its fleet at such a high speed, it's too risky in a way!!!!!

19 December 2005
New Record for Dragonair Cargo Posted in November
Corporate Press Release

(HONG KONG) Dragonair set a new cargo volume record in November, carrying more than 35,000 tonnes in a single month for the first time in its history. The total of 35,529 tonnes surpassed a mark established in October last year.

Passenger numbers also rose year-on-year, rising 9.7% over the same month in 2004 to 440,416.

"The October-December period is shaping up into our best quarter this year in terms of headline numbers," said CEO Stanley Hui.

"Cargo had an excellent month, because November is traditionally a peak time for shipments. Shipments from Europe were particularly strong on a month-month basis due to demand for charter flights to Japan for Beaujolais wine from France.

"The number of passengers remained over 400,000 for a second consecutive month, and we expect a similar situation in December. Both individual traveller and group travel numbers saw robust growth, partly driven by promotions in several markets."

Mr Hui continued: "We do see, however, that the overall travel market is becoming more price sensitive, which continues to place pressure on yields. This, combined with the high price level of oil, is making for a more difficult environment at the operating level. And unfortunately we expect these factors to persist in 2006."

More data : http://www.dragonair.com/icms/servlet/template?series=5&article=2657&lang=eng

19 December 2005
Dragonair Plans Series of Additional Flights Over Holiday Period
Corporate Press Release

(HONG KONG) Dragonair plans to operate a total of 109 additional services, including charter flights, over the Christmas and Lunar New Year holidays, a period that is traditionally the busiest of the year.

"The Lunar New Year comes just over one month after Christmas, so we have a very busy six weeks coming up, with business people heading home and leisure travellers off in search of either snow or sun," said Chief Operating Officer Andy Tung.

"As a result we shall be operating a total of 109 extra flights over the period, with those services offering something for everyone: from snow and ice festivals to lush tropical islands with sandy beaches."

Among the airline's scheduled destinations, Taipei and Shanghai will see the biggest increases. Taipei will have 22 services added between January 20 and February 5 to cater to demand from Taiwanese business people in the Mainland returning home for the holidays. Shanghai will see five more flights operated between January 25 and February 5.

Extra services will also operate to Guilin, Changsha and Kota Kinabalu.

"We shall be using larger aircraft on most of our flights to Kota Kinabalu in Malaysia and adding 16 services there between December 23 and February 5, for people in search of warmer climes," said Mr. Tung. "We shall also be operating our annual service to Harbin, the home of the Ice-Snow Festival, as part of a twin-centre package with Dalian."

The airline is planning a large number of charter flights over the holiday period as well.

"By far the biggest number of additional flights is agent-chartered services to Japan," Mr Tung noted. "Destinations in Japan are always a popular choice at this time of year and now there is the added attraction of a good exchange rate for travellers."

The airline will operate 15 flights to Miyazaki, the legendary home of the gods that created Japan, six to Hakodate, the third-largest city on Hokkaido, nine to Asahikawa, the gateway to Soun-kyo Gorge and the town of Furano, four to the sub-tropical island of Okinawa, three to Kushiro, renowned for its fauna and flora, and two each to the coastal city of Niigata, famous for its rice and sake, and Nagasaki, one of the first Japanese towns to open to foreigners, between December 20 and February 10.

"While most of the demand for the Japan services is expected to come from Hong Kong, some, such as Okinawa and Niigata, should see considerable interest from Japanese travellers keen to visit the attractions of our home town."

Seven charter services will also be operated to Langkawi in Malaysia, while three are planned for Siem Reap, the gateway to the Angkor Wat jungle complex in Cambodia.

China Eastern Airlines to open business office in HK
28 December 2005
Xinhua News Agency

HONG KONG, December 28 (CEIS) -- China Eastern Airlines Corporation Limited announced here on December 28 that its Hong Kong business office will start operation on January 1, 2006.

Luo Chaogeng, president of China Eastern, said "By providing quality services to customers with a more direct and open manner, the business office will reinforce China Eastern's participation in the aviation industry in Hong Kong, and also enable us to play an active role in linking Chinese mainland with Hong Kong and other places all over the world."

According to China Eastern, the business office will cater the needs of different market segmentation in Hong Kong by directly providing featured passenger and air cargo services, as well as establishing an effective and efficient communication channel for customers.

It will also directly provide customers with one-stop services including lounge counter, check in, inquiry, and handling abnormalflights.

Listed on the Hong Kong Stock Exchange and the New York Stock Exchange in February 1997 and on the Shanghai Stock Exchange in November 1997, China Eastern Airlines Corporation Limited is one of the three largest air carriers in Chinese mainland which has a market share of approximately 10 percent in Hong Kong International Airport, following Cathay Pacific and Dragonair.

DHL to Launch Cargo Flights Between China's Qingdao And HK

QINGDAO, Dec 30 Asia Pulse - German logistics giant DHL has announced that it will launch cargo flights between Qingdao, east China's Shandong Province, and Hong Kong via Hangzhou, in eastern Zhejiang Province, in February next year.

Several months ago, another express giant UPS from the United States launched direct cargo flights between Qingdao and South Korea's Inchon.

Express commodities leaving the Qingdao Liuting International Airport reached 40,000 items monthly as against the former figure of 25,000 items. The volume imported via the airport amounted to approximately 8,000 items from the former 5,000 items, according to customs figures.

Most express commodities handled by the airport are samples, precise spare parts and high-tech products.

TNT明年自辦香港航線
2005-12-30

http://www.takungpao.com/images/topimages/logo2.jpg

【大公報訊】荷蘭TNT快遞（香港）副總經理甯漢崇接受傳媒訪問時表示，TNT計劃於二○○六年第三季度推出由TNT貨機親自執行的香港來往歐洲航線服務，公司已經開始與特區政府商討有關細節，預料該航線初期每周有兩班，採用載貨量一百噸的波音747-400ERF型貨機。

據悉，TNT為了推出該項新服務已向美國的飛機租賃公司Guggenheim Aviation Partners租用兩架波音全貨機，租期為十年，首架飛機將用作開闢上海來往TNT歐洲轉運中心-比利時列日的航線服務。甯漢崇說，上海到歐洲的航線開始時每周將有四班往返班機，到二○○七年初增加至九班。

正爭取機場著陸權

至於TNT即將接收的第二架同款貨機極有可能投入香港至列日航線服務。他表示，TNT正在爭取在香港國際機場的著落權，並相信成功機會很大，新服務的初始階段將需要每周兩次停靠香港，午夜後香港機場將會有許多空機位可供停機，而公司在香港的航權亦沒有問題。

對於貨源方面，他強調，香港有足夠的貨運量，公司每年單從香港運出的貨物量就達到約2萬噸，還沒有包括運入香港或從歐洲到亞洲各地經香港中轉貨物。他又表示，TNT利用自己的貨機執行香港航線，減少利用其他航空公司的艙位，可直接提升企業形象和給予顧客更大信心，此舉肯定受市場歡迎。

顧客首選香港樞紐

甯漢崇稱，香港國際機場依然是「中國地區最可靠的機場」，其他鄰近機場，如廣州白雲機場，還不足以對其構成威脅，因為這些機場的設施還沒有達到最高的水平。「我們的客戶儘管在中國大陸設了生產基地，卻仍然願意經香港出貨，因為香港在飛機航線和航班上，特別是到歐洲和美國市場都比較穩定。」他如是說。他相信，香港國際機場的競爭對手還需要五年以上時間才能構成明顯威脅。

TNT的飛機隊伍雖然已有五十多架廣體貨機，短期內又會再接收三架波音757F貨機，但該公司一直未曾採用自己的貨機開辦亞洲航線，這些貨機目前只負責執行歐洲區內航線。TNT在香港主要與國泰航空，法航─荷航，港龍航空和德國漢莎航空等合作夥伴簽訂預訂艙位協議，為該公司提供貨運服務。

Oasis Hong Kong Air plans to make maiden flight to London in March - report
2 September 2005

HONG KONG (XFN-ASIA) - Oasis Hong Kong Airlines, a long-haul budget carrier, plans to make its maiden flight to London in March to compete with Cathay Pacific Airways, The Standard reported.

The paper quoted airline chairman Raymon Lee as saying that it plans to also launch flights to Cologne/Bonn in Germany two months after the London service has started.

But the Air Transport Licensing Authority has yet to approve the flights. The carrier, 60 pct-owned by Lee and his wife Priscilla, has applied to the government for a license. Other carriers, however, have objected.

Oasis's other founders include Allan Wong, chief executive of the Hong Kong-based consumer electronics maker VTech Holdings, who owns 15 pct.

Managing director Stephen Miller, one of the founders of Hong Kong Dragon Airlines, also holds a small stake in the carrier.

^ That's a very dated article. Soon Qantas will have daily flights from London to Hong Kong (up from their current three per week) so there will be 63 direct flights per week (9 per day) in each direction plus however many are added by Oasis:

63 direct flights per week from London to Hong Kong:
- Cathay Pacific = 28
- British Airways = 21
- Virgin Atlantic = 7
- Qantas = 7
- Oasis = ??

Whoops ... posted the wrong article about Oasis. Here's what was supposed to go there - Oasis Plans 2007 IPO :

甘泉航空明年集資百億拓業務
2006-1-4

【大公報訊】正在籌備開辦航線的香港甘泉航空，主席李卓民接受外電訪問時透露，公司計劃在二○○七年公開招股集資約100億港元，作購買飛機等拓展業務之用。

該公司最近雖已獲得空運牌照局批准開辦香港來往倫敦、米蘭、科隆、柏林、美國奧克蘭和芝加哥六條航線，但至今仍未獲民航處發出營運許可證(AOC)，令業務計劃一直未能順利推行。李卓民預料，甘泉航空可望在未來數月獲得有關許可證。

甘泉航空計劃租賃五架波音747-400型客機，並希望在五年內引入二十五架飛機，開闢十二至十五條航線。在倫敦航線上，甘泉要與國泰航空、英航和維珍等正面競爭，李卓民強調，公司將以平價機票作招徠，來回票價最低可至1000港元，而平均票價則較競爭對手平40%至50%，相信可爭取到一定的市場份額。

機票價格如此便宜，甘泉航空唯有盡量降低營運成本。他說︰「公司會簡化行政架構，將大部分工序外判。」又說，公司與其他只集中在客運業務的廉價機票航空公司不同，甘泉還會借助開展貨運業務爭取更高的回報。

^ Can you translate please? I am looking forward to Oasis Airlines' debut. Does it mention when services are forecast to start?

Quick Translation - Main Points
1. 2007 IPO would raise about HK$10 billion
2. Oasis has licenses for routes to London, Milan, Cologne, Berlin, Oakland, Chicago
3. But hasn't received AOC from the Hong Kong aviation authorities
4. Plan for 5 Boeing 747-400 passenger planes
5. Hope to expand fleet to 25 planes in 5 years
6. Ticket price sto London can be as low as HK$1000 to compete with Cathay, Virgin, and BA

There wasn't any further information on expected launch dates.

^ OK thanks. :okay:

INTERVIEW-Hong Kong startup budget airline eyes long-haul
By Vinicy Chan

HONG KONG, Jan 3 (Reuters) - A Hong Kong startup airline aims to depart from the standard budget carrier model by operating exclusively on long-haul routes.

Oasis Hong Kong Airlines, launched by a husband-and-wife team of property investors, plans to make its maiden flight from Hong Kong to London's Gatwick Airport in June as Hong Kong's first low-fare carrier of any type.

"The low-cost long-haul model has numerous advantages," said part-time pastor Raymond Lee, who founded Oasis with his wife Priscilla. Oasis recently won approval from the city's Air Transport Licensing Authority to operate scheduled flights to London, Milan, Cologne, Berlin, Oakland and Chicago.

The carrier hopes to win an air operator's certificate (AOC) from the Civil Aviation Department in the next few months.

It expects to raise about HK$10 billion in an initial public offering in mid-2007 to fund expansion, Lee said.

The airline plans initially to lease five Boeing 747-400 jets and has a five-year plan to expand its fleet to 25 aircraft, serving between 12 and 15 destinations. It will take on other planned startups as well as established players such as Hong Kong's largest airline, Cathay Pacific Airways

On its London route, Oasis will compete with Cathay, British Airways and Virgin Atlantic, all of which will offer more frequent flights than Oasis.

Lee said full-service carriers have bloated cost structures, while his expenses can be kept low by flying long distances and maximising flying hours of big aircraft with low per-passenger costs.

"We'll keep a very lean and mean organisation, and we'll outsource everything we can," Lee told Reuters in an interview.

Oasis plans to broaden its potential revenue stream by carrying freight, which is not a priority for short-haul low-cost airlines such as Ryanair and easyJet

Oasis will not be alone. Qantas' Jetstar arm and Viva Macau, controlled by businessman Raymond Ho, the younger brother of Macau's Chief Executive Edmund Ho, both hope to launch low-cost long-haul flights.

HK-LONDON RETURN FROM $128

The Lees, who own 60 percent of the firm, and others, are investing HK$800 million (US$102.56 million) in Oasis. Allan Wong, chief executive of Hong Kong consumer electronics maker Vtech Holdings holds a 15 percent stake.

Oasis aims to price round-trip tickets starting as low as HK$1,000 (US$128), although customers looking for such a bargain would have to book months in advance, said Oasis Chief Executive Officer Stephan Miller, a founder and former chief executive of the city's second largest airline, Dragonair.

Oasis expects its fares to average 40 to 50 percent below those of full service counterparts. It aims to attract a new market of passengers flying long-haul for the first time.

"Fares starting from HK$1,000 will be highly stimulative," said Lee, who also plans to offer budget business class service.

A recent survey by brokerage CLSA found many potential passengers would upgrade to a lower-frills business class seat at the right price.

"Based on our survey there is a niche for Oasis. Whether this niche is big enough for both Cathay and Oasis, only time will tell," CLSA analyst Kevin O'Connor wrote.

Existing carriers are expected to fight back.

"The incumbent airlines undoubtedly will lower many of their fares to the same level Oasis does, and the customers will most likely make the rational choice to fly with the known commodities, with their established safety histories and frequent flier programs," said Richard Pinkham, a Singapore-based consultant with the Centre for Asia Pacific Aviation.

He also noted a global shortage of pilots, meaning Oasis could face high salaries, missing out on a source of cost savings historically enjoyed by budget airlines. It also faces the same high jet fuel prices and costly Hong Kong airport fees as its rivals, he said. (US$=HK$7.8)

^ Great news. Thanks for posting. :okay:

In my opinion, Oasis will be very important to HK for intensifying its position of Asia Avaiation Hub, but I wonder if it is possible for them to be breakeven.

Oasis is a niche airline. They're not going to be a major player at HKIA. I imagine them to be another Hong Kong Express or CR Airways. The long-haul low-cost market is untested. Oasis knows about this. That's why they prefer flying to cities that are not normally served by direct flights.

I agree with you, I think Oasis is trying to avoid direct competitions from Cathay Pacific. As we can see, they just plan to launch new services to cities which are not served with dircet flight, such as Colonge, Milan, Berlin and Oakland. It can be clearly seen that the participation of Oasis would be beneficial to HKIA by the fact that they can broaden the international network for HKIA. Generally speaking, as a real aviation hub, HKIA should contain a variety of airlines.

Delay for heliport after more data sought on noise
Residents' concern at increased din has officials seeking more information despite study and consultation
09 January 2006
South China Morning Post

The proposed Sheung Wan heliport expansion has suffered a setback after public concern about noise levels.

The Environmental Protection Department has asked the Civil Aviation Department for more information on the plan for a helipad atop the Hong Kong-Macau Ferry pier near the Shun Tak Centre.

This follows a month-long consultation on the environmental impact assessment, which ended in November.

But an EPD spokeswoman declined to disclose details of the views expressed, saying the project was being evaluated.

The department is still waiting for a response from civil aviation officials, who submitted the assessment, carried out by Maunsell Environmental Management Consultants, in August. The spokeswoman said it would take 30 days to evaluate the information once it became available.

But the Economic Development and Labour Bureau, which is behind the proposed development, said the latest demand by the EPD would not significantly delay the project, due to be completed by the end of next year.

The bureau plans to build a 1,764-square-metre helipad next to the existing 885-square-metre helipad, which caters for helicopters travelling between Hong Kong and Macau, to meet predicted demand for cross-border trips up to 2015.

Earlier, local district councillors had voiced strong reservations about the assessment, saying the estimate of the likely noise level was too low.

Central and Western District Council passed a motion urging the EPD to reject the assessment. The council also wants night trips banned after the heliport expansion, which will result in more day trips.

The assessment found that the average noise level between 7pm and 11pm would be about 65 decibels and the maximum noise level between 8am and 7pm 85 decibels.

The consultant said in the assessment report that the estimated noise levels complied with the current legislation and the residual impacts were "considered to be acceptable".

District councillor Kam Nai-wai said he was not opposed to the expansion. "But the government should strike a balance between economic development and residents' living conditions," he said.

Sam Hui, an assistant secretary for the bureau, said it understood residents' concern about potential noise from the new helipad. "Many residents have a perception that the heliport expansion will increase noise levels by several times," he said.

"But the two helipads will not be used at the same time. We find the noise levels will be increased by only 1 to 2 decibels."

Mr Hui said that once an environmental permit was granted for the expansion, tendering for the helipad's construction and operation would start.

The existing helipad on the rooftop of Shun Tak centre is managed by Hong Kong Express, which also operates cross-border flights.

The maximum daily number of movements at the two proposed helipads will be 206, compared with 108 for the existing facility.

Trojan horse at walls of local aviation regime
06 January 2006
South China Morning Post

Hainan Airlines' attempt to take a controlling stake in CR Airways has entered a holding pattern as the mainland carrier's executives field ownership queries from Hong Kong authorities, who in turn are consulting their lawyers.

What emerges from those discussions will go beyond merely deciding whether a newly capitalised CR Airways meets the "principal place of business" and incorporation requirements of a Hong Kong-designated airline.

It could also have serious implications for our incumbent carriers and how Hong Kong's aviation regime continues to be viewed by our bilateral partners.

Depending on which version of the media reports you believe, Hainan Air, China's No4 airline group by revenue last year, has proposed to take 60 per cent or 70 per cent of CR Airways, a small local carrier that, until recently, appeared content to make a humble living from regional charter flights.

At face value, a successful Hainan Air bid would appear to put CR Airways outside the criteria allowing it to remain a Hong Kong-designated airline. Those criteria hold that an airline must be incorporated in Hong Kong; its principal place of business must be in Hong Kong; and it must be managed and controlled from Hong Kong.

Presumably, the CR management is trying to convince officials at the Economic Development and Labour Bureau that a company majority controlled by a China state-owned enterprise can meet those criteria.

That will take some doing because beyond its impact on CR Airways' future potential to make a buck, a decision in its favour could shift international perception about the integrity of Hong Kong's aviation regime.

In the late 1980s, when it became clear Hong Kong would be handed back to China, local negotiators began the long, hard work of negotiating new bilateral aviation pacts to free Hong Kong from previous British deals while still recognising its unique status as a special administrative region of China.

According to people with knowledge of the process, one of the trickiest issues was convincing our bilateral partners that Hong Kong would not be used as a "flag of convenience" by foreign firms setting up shop in the region to exploit local air service agreements.

Apparently, those assurances were very specific and very carefully drawn, the result of arduous negotiations.

Among the hardest to convince were the Japanese and the Americans. It would be easy to see how those countries and others would take a dim view of any suggestions that a Hainan Air-controlled CR Airways was anything but a mainland entity masquerading as a Hong Kong enterprise.

"What Hainan Air is trying to do is drive a Trojan horse through [Hong Kong's] air service regime," one executive told Below Deck this week.

Our bilateral partners would have several counter-steps at their disposals should any deal not meet their approval.

They could challenge Hong Kong to prove that CR Airways is locally controlled and operated and that Hainan Air is nothing more than a "sleeping" investment partner.

Given the stake purportedly on the table, that would be a tough case to make.

They could also take the unlikely step of granting CR Airways access to their markets for a steep price, making Hong Kong and its carriers pay heavily in future bilateral negotiations for a new, "maverick" entrant.

Or - and this undoubtedly has airline lobbyists working overtime - countries that remain sceptical could just withdraw the rights awarded to incumbent carriers on the basis that they had lost confidence in the autonomy of the Hong Kong regime.

Presumably, Hainan Air did the due diligence before making the proposal and following that up last month with an audacious US$3 billion aircraft order, including intercontinental jets.

New CR Airways chairman Chen Feng (pictured) last week said he remained confident the new entity would be entitled to Hong Kong designation and all the rights that go along with it.

Experts suggest Mr Chen's confidence may lie in the fact that Hong Kong's air services "arrangement" with Beijing differs from the usual bilateral deals it signs with foreign partners, one country, two systems and all that.

They say it may leave scope for Hainan Air to set up in Hong Kong and fly to the mainland but not international destinations, putting Dragonair and Hong Kong Express under intense pressure.

However this plays out, allowing the new CR Airways to retain its Hong Kong designation would require a lot of explaining - to sceptics both here and abroad.

HK's HACTL says 2005 cargo up 7.5 pct to record

HONG KONG, Jan 10 (Reuters) - Hong Kong's main air cargo terminal said it handled 7.5 percent more cargo in 2005 than in the previous year, achieving a new yearly tonnage record.

Hong Kong Air Cargo Terminals Ltd. (HACTL), which is 25 percent owned by Jardine Matheson Holdings and 20 percent by Swire Pacific Ltd. , handled a record 2.43 million tonnes of cargo in 2005, it said in a statement on Tuesday.

It gave no reason for the increase.

For the month of December, HACTL moved a total of 222,449 tonnes, up 10.9 percent from the same period a year ago. Total tonnage was up 8.3 percent year-on-year to 676,998 tonnes for the fourth quarter.

Export volume rose 8.2 percent to 1.38 million tonnes in 2005 and was up 8.7 percent in December to 123,179 tonnes.

Import volume declined slightly by 2.7 percent in 2005 to 674,204 tonnes but was up 5.1 percent to 63,754 tonnes in December.

Growth in the trans-shipment sector remained strong, rising 28.6 percent year-on-year in 2005 to 382,423 tonnes, and gaining 33.3 percent in December to 35,516 tonnes. (US$1=HK$7.8)

Third Carrier
Hong Kong Express emphasizes business services with Embraer 170s
Michael Mecham
9 January 2006
Aviation Week & Space Technology

When Hong Kong Express took delivery of its first Embraer 170 early last year, it was pioneering air services across several fronts.

The carrier was quick to recognize that business travel would be enhanced by the 2004 Closer Economic Partnership Agreement that liberalized air services between China and Hong Kong. Although Hong Kong is part of China, the former British colony continues to run its own economic affairs, including its air service agreements. Hong Kong has become one of Asia's most competitive markets, with three carriers--Cathay Pacific, Dragonair and Hong Kong Express--serving the mainland.

Hong Kong Express (HKE) has its roots in HeliExpress, which operates Sikorsky 76C+ helicopters to cities in the Pearl River Delta, including Macau, the former Portuguese colony, and Shenzhen, an industrial trade center.

Last September, HKE began Asia's first regional routes with the Embraer 170 when it opened links between Hong Kong and Guangzhou, southern China's biggest industrial city. Guangzhou is home to China Southern Airlines, the country's largest carrier and leader of that city's effort to establish itself as the region's leading hub, a title it would have to take away from the better known Hong Kong. Cathay carries Hong Kong's banner in a far wider international network than China Southern.

HKE flies well below the radar of either of those carriers as it makes three-times-daily business connections between the two cities. The question for Chief Executive Andrew Tse is how quickly to add capacity.

Tse is on target for a business plan that sees five mainland destinations opening by next spring using four Embraer 170s. By last month, he had opened his second and third routes--to Hangzhou and Ningbo--and taken delivery of his third leased 170. By April, HKE expects delivery of its fourth 170 through a lease contract with GE Commercial Aviation Service, and is set to serve Nanjing and Chingqing.

The question now is whether to step up incrementally in aircraft size by acquiring the 100-seat Embraer 190 or to make a bigger jump and choose from the Airbus A320 or Boeing 737 families. Talks have begun with all three.

CR Airways eyes wet-lease to boost New Year flights
14 January 2006
South China Morning Post

CR Airways has applied to boost the number of passengers it flies to mainland destinations to capitalise on the travel boom over the Lunar New Year period.

It has applied to the Civil Aviation Department to boost its capacity to Tianjin and Jinan by wet-leasing a B737-800 from Hainan Airlines, deepening the carriers' relationship ahead of an anticipated merger.

"We are trying to look for a way to expand the fleet before the Lunar New Year but we haven't had much luck," chief executive Kenneth Tong said, adding the application was submitted a month ago.

A spokesman for the department confirmed a decision was pending.

"If all the information we need is submitted, the process normally takes 60 days," he said.

If approved for the wet-lease, which requires Hainan Air to provide the aircraft and crew, CR Airways would more than triple its capacity on the routes. It currently operates 50-seat CRJ-200 aircraft.

Hainan Air and CR Airways for the past few months have been fine-tuning a proposal to make Hainan Air group chairman Chen Feng the Hong Kong carrier's controlling shareholder. He became its top executive last month.

Opponents of the move insist any airline controlled by Mr Chen, a mainland citizen, does not fit the criteria for a Hong Kong-designated airline, exempting it from using local traffic rights. The government is seeking further information from CR Airways and legal advice before making its decision.

Viva Macau chief executive Andrew Pyne said whatever decision was rendered would have an impact in Macau, as Hong Kong and the former colony both have been awarded bilateral negotiating rights from foreign nations without being countries in their own right.

"What happens in Hong Kong impacts on how this special status continues to be viewed internationally," Mr Pyne said.

"We are watching that closely and we have confidence that the authorities will act to protect the integrity of Hong Kong's air service arrangement. There is a lot at stake."

A spokesman for the government said a locally designated airline must meet three criteria - it must be incorporated in Hong Kong, its principal place of business must be in Hong Kong, and it must be managed and controlled from Hong Kong.

It was conceivable that an airline controlled by mainland interests could be awarded Hong Kong designation provided it met those three criteria, he said.

"The ownership is not the primary consideration," Mr Pyne said.

Tung quits Dragonair to go back to OOCL
17 January 2006
South China Morning Post

Andy Tung Lieh-cheung will step down as the chief operating officer of Hong Kong Dragon Airlines (Dragonair) to return to his family's container shipping business where he worked for five years in the 1990s.

Mr Tung, the oldest son of former chief executive Tung Chee-hwa, will leave the airline at the end of next month and take up a business development and marketing role at Orient Overseas Container Line (OOCL).

Dragonair chief executive Stanley Hui Hon-chung confirmed Mr Tung's departure in an internal memorandum to staff yesterday.

"Andy will leave the company at the end of February after 4½ years with us. I would like to take this opportunity to personally thank him for his contribution during his time at Dragonair," Mr Hui said. "Andy helped with the smooth running of the airline and was of considerable help to me."

Mr Tung leaves the airline as it struggles to retain historic levels of profitability despite soaring fuel costs and mounting domestic competition on its core mainland service.

Newcomers Hong Kong Express and CR Airways have been boosting services to secondary mainland cities served by Dragonair and it faces the spectre of its powerful associate Cathay Pacific Airways being approved to fly passenger services to Shanghai at the end of the year.

However, with the shipping industry well into one of its cyclical downturns, Mr Tung will not be short on challenges at his family firm.

OOCL and its partners in the Grand Alliance have been paddling rapidly to fill the void in their services between Asia and Europe left by Maersk-Sealand's acquisition of P&O Nedlloyd last year.

They are on the verge of announcing schedules for their Far East-Europe services just as spot freight rates on even the stronger westbound leg have fallen sharply.

HK allows Cathay, others to extend fuel surcharges

HONG KONG, Jan 13 (Reuters) - Hong Kong will allow 12 airlines, including the city's dominant carrier Cathay Pacific Airways Ltd. ., to extend passenger fuel surcharges in February to help offset high oil prices.

The Civil Aviation Department said on its Web site ( www.cad.gov.hk/english/fuel_surcharge.htm ) on Friday that it had so far approved applications from 12 airlines requesting the extension of the surcharges for the months of February and March.

The surcharge will remain unchanged from that of December and January.

Cathay will next month maintain a surcharge of HK$93 (US$11.92) per ticket on short-haul flights and HK$383 on long-haul flights, the same as for the previous two months. Air France will keep its surcharge at HK$275, while Royal Nepal Airlines' will be at HK$120.

Air China Ltd. , China Eastern Corp. Ltd. , and China Southern Airlines Co. Ltd. , along with Hong Kong-based unlisted carriers Dragonair, Philippine Airlines , Shangdong Airlines, Shenzhen Airlines, Sichuan Airlines and Xiamen Airlines, will keep their surcharges at HK$93 per flight from Feb. 1.

Fuel accounts for a large share of airlines' costs and record high prices last year have severely crimped earnings. Investors also worry that higher ticket prices could eventually curb travel demand.

Shares in Cathay Pacific, which have risen 8.4 percent over the past three months, fell 0.35 percent to HK$14.15 in late Friday morning. China Southern fell 1.08 percent to HK$2.30, China Eastern lost 0.78 percent to HK$1.28, while Air China rose 0.95 percent to HK$2.65. (US$1=HK$7.8)

Hong Kong International Airport says passenger traffic rose 9.7 percent in 2005
16 January 2006

HONG KONG (AP) - Passenger traffic at Hong Kong International Airport rose 9.7 percent in 2005, fueled by strong growth in transit and transfer passengers, the city's airport authority said Monday.

The number of passengers climbed to a record 40.7 million last year, up from the previous record of 37.1 million a year earlier, Airport Authority Hong Kong said.

Cargo traffic rose 10 percent to 3.40 million metric tons (3.74 million short tons), boosted by robust demand for intra-regional trade as well as trade between Asia and the U.S. and Europe. Cargo throughput in 2004 totaled 3.09 million metric tons (3.39 million short tons).

"2005 was a remarkable year for HKIA," said Hans Bakker, the authority's commercial director. "Impressive figures aside, we made a number of breakthroughs in our business."

He said a total 10 new carriers joined the airport's air network and provide scheduled services.

In December 2005, the airport's passenger traffic rose 6.9 percent to 3.58 million, up from 3.35 million in the same month the previous year.

Opened in 1998, Hong Kong Chek Lap Kok airport operates 5,000 flights a week, with a capacity to handle 45 million passengers a year. The Hong Kong government owns 100 percent of the Airport Authority, but has plans to sell part of its interest.

Executives have said a stock market listing is likely in 2006.

Hong Kong airport foresees daily flight record

HONG KONG, Jan 18 (Reuters) - Hong Kong airport will see a record 870 flights landing or taking off on Jan. 27 ahead of the Lunar New Year holiday, the Civil Aviation Department said on Wednesday.

The number of plane movements will be 27 percent higher than the daily average of 775 flights, the department said in a statement. Chinese New Year begins on Jan. 29.

The award-winning Chek Lap Kok airport, built on reclaimed land north of rural Lantau island, opened in 1998 and is an important regional trans-shipment centre and passenger hub.

Costs cast shadow over Dragonair's record run
Airline's passenger and cargo surge may not offset higher expenses, say analysts
19 January 2006
South China Morning Post

A record volume of passengers and cargo traffic for Hong Kong Dragon Airlines last year was unlikely to have compensated for the carrier's rapid fleet expansion and higher operating costs, analysts say.

The airline for the first time carried more than five million passengers and increased its cargo volumes 12.5 per cent to 385,000 tonnes.

But analysts said a double-digit expansion of its passenger and cargo capacities- along with higher fuel prices - was likely to have put pressure on earnings.

The average price of a barrel of jet fuel rose a comparative 43 per cent last year to US$67.90.

Dragonair declined to say whether a record year of moving travellers and freight fully offset the higher cost environment but chief executive Stanley Hui Hon-chung said some responses had helped ease the burden.

"The high fuel price put a lot of pressure on operating costs last year while various measures such as hedging and fuel surcharges helped mitigate the impact on the bottom line," Mr Hui said.

"Stronger volumes also helped offset part of the additional costs brought about by higher fuel prices. We believe fuel costs will continue to be a wild card this year, so we will do all we can to control other costs and generate more revenue with the aim of delivering overall growth."

The carrier applied a fuel surcharge of $93 per flight for all of its passenger destinations.

An analyst for a western investment bank yesterday said Dragonair's fortunes declined as the year progressed, bottoming out last month when its passenger load factor - the percentage of available seats filled - fell 3.8 percentage points year on year.

"The business peaked early and in terms of momentum, it declined for the rest of the year," he said.

Dragonair flew more than 421,000 travellers for the month, up 6.8 per cent year on year but it also had 10 per cent more seats to fill.

With competition at all-time highs on the Kangaroo route and fuel costs rising, the airline abandoned plans to launch flights to Sydney in October, prompting it to offload aircraft and crew earmarked for the service.

Dragonair, which is thought to have posted earnings of about $665 million last year, ramped up services to the Yangtze River Delta region in the second half, increasing flights to Shanghai and Hangzhou.

The market saw the added flights as competitive responses to Hong Kong Express and Cathay Pacific which may be awarded passenger services to Shanghai before the end of the year. But Dragonair also struggled to fill the extra seats.

"They wet-leased two aircraft to Air China which helped cap the capacity expansion and stabilise load factors," said Karen Chan, aviation analyst for Credit Suisse First Boston. "But I don't think [last year was] a good year for Dragonair, just as with other airlines."

Dragonair Dec Passengers Up 6.8%, Cargo Up 8.1%
18 January 2006

HONG KONG (Dow Jones)--Hong Kong's Dragon Airlines Ltd. said Wednesday its passenger traffic in December rose 6.8% from the year-earlier month, underpinned by demand for its routes to and from mainland China.

Hong Kong's second-biggest airline by revenue, after Cathay Pacific Airways Ltd. (0293.HK), carried 421,266 passengers in Dec. 2005, up from 394,577 in the year-earlier month.

In November, its passenger traffic rose 9.7% from November 2004 to 440,416 passengers.

Its cargo volume in December rose 8.1% to 36,805 tons, from 34,034 tons in December 2004.

For full-year 2005, Dragonair carried a record 5.03 million passengers, up 9.9% from the previous record of 4.58 million in 2004. Its cargo volume last year rose 12.5% to 385,000 tons from 342,413 tons.

"The results are good considering the difficult operating environment we endured, with record prices for oil and greater competition," said Dragonair Chief Executive Stanley Hui in a statement.

"We see no end to the tough operating environment this year, but we aim to continue to deliver healthy growth."

From Hong Kong, Dragonair flies to over 30 destinations across the Asia-Pacific region, while its cargo network connects Europe, the Middle East, Japan, Taiwan and China.

The unlisted company's major shareholders are China National Aviation Co. (1110.HK), which holds a 43.3% stake; CITIC Pacific Ltd. (0267.HK), with 29.4%; Cathay Pacific, with 17.8%; and Swire Pacific Ltd. (0019.HK), which holds 7.7%.

來往港日五航班延誤
24/01/2006

http://the-sun.orisun.com/channels/news/20060124/img/sn08012401_big.jpg

【本報訊】受到日本大風雪影響，昨日最少有五班往來本港及日本的航機延誤，其中一班由香港飛往東京的航機更延誤五小時，幸而大部分本港到日本的旅行團都能如期出發。

機管局指出，截至昨晚六時，共有四班抵港航班延誤四十分鐘至近四小時，另外一班前往東京的日本航空公司航班延誤約五小時，亦有一航班因調動取消。日本航空表示，航班昨已陸續恢復正常。

東瀛遊最少有兩個日本團受班機延誤影響要延遲五小時出發，新華旅遊亦有一團受影響。參加東瀛遊日本團的陳先生昨表示，航班延誤數小時可以接受。

此外，港人周先生全家原定前日早上乘搭九時四十分的航班出發，但班機延誤，航空公司要周氏一家回家等候安排，後來安排轉乘昨早十時四十分的航班。他抱怨航空公司安排失當，建議成立專櫃處理問題。 http://the-sun.orisun.com/channels/img/endmarker.gif

Hundreds back home after snow brings Tokyo to a standstill
23 January 2006
South China Morning Post and Agence France-Presse

Hundreds of passengers returned to Hong Kong yesterday after being stranded at Tokyo's international airport for more than a day because of a severe snowstorm in the Japanese capital.

The 685 passengers on three Cathay Pacific flights were among nearly 10,000 travellers stranded over the weekend at Narita Airport after 51 international flights were cancelled due to the snowstorm.

They returned to Hong Kong yesterday after being stranded for between 22 and 27 hours, with the last group arriving at 8.30pm.

Yesterday, 16 flights between Tokyo and Hong Kong were either delayed or cancelled as of 5pm. A tour group scheduled to leave early yesterday for Hokkaido had to wait until the afternoon before it could depart.

A Cathay spokeswoman said although not everyone received accommodation, they were supplied with enough food and blankets during the delay. Five Cathay flights bound for Japan were delayed for up to five hours yesterday, but the situation was improving.

Travel Industry Council executive director Joseph Tung Yao-chung said no complaints had been received.

The season's first snowfall in the greater Tokyo region was 9cm deep in the centre of the capital on Saturday, the heaviest in eight years.

At Narita Airport, apart from the 51 cancelled flights, a further 90 or so flights were delayed because workers were unable to remove snow from the runways quickly enough.

"A total of 9,690 passengers were stranded overnight at the two terminals. We provided blankets and extended the time for air conditioning and lighting to accommodate them in the lobbies," an airport official said.

"We also opened special paid waiting lounges free of charge."

At Tokyo's domestic Haneda Airport, about 100 flights were cancelled on Saturday, disrupting the travel plans for 14,000 passengers.

By noon yesterday, at least 125 people had suffered broken bones and other injuries in Tokyo after slipping in the snow, fire officials said.

About 200 others were reported hurt in nearby prefectures.

It usually snows lightly only a few times a year in the Tokyo region, located on the warmer Pacific side of Japan's main island.

6.5 million travelers on move for holidays
Mimi Lau
28 January 2006
Hong Kong Standard

About 6.5 million people, nearly equivalent to the total population of Hong Kong, are expected to enter or leave the SAR over the next few days, the Immigration Department said.

A large number of these will merely be passing through Hong Kong International Airport en route to other countries. The Lunar New Year "Golden Week," as it is dubbed by the tourist trade, began Friday with airport authorities reporting a record 870 designated flights, 12 percent more than the previous high of 827 on October 28 last year.

The Civil Aviation Department said 21 airlines have submitted requests to operate 333 additional scheduled flights and 333 ad-hoc charters _ a total of 666 extra flights between January 24 and February 9.

Taipei is the most popular destination, followed by Bangkok, Seoul, Sapporo and Tokyo.

A spokesman for the Immigration Department said Hong Kong could expect around 505,000 mainland visitors during this period, an increase of 8 percent over last year.

To cope with the influx, an extra 144 staff will be deployed to all border checkpoints and the airport, the spokesman said.

China Travel Service Inbound Visitor Department deputy general manager Yeung Chi-kwan said the influx of visitors for the holidays is expected to be higher than for the last National Day holiday week, Christmas or New Year.

"It appears the shopping needs of mainland visitors have rebounded," Yeung said.

A spokesman for the Airport Authority said contingency measures have been made should flights be delayed by bad weather.

New Air Route Links Wuxi and Hong Kong
By Ke Lu
26 January 2006
China Daily

Wuxi Airport today celebrates the launching of its first passenger service to Hong Kong, providing direct transport from the Yangtze River Delta region to the flourishing international hub.

The new route means that Wuxi airport will be able to function as an open port.

A temporary exit-entry administration office has been set up to handle exit-entry procedures during the Spring Festival which falls on January 29 this year.

Wuxi Airport was opened in February 2004 for passenger flights, and ranks 44th among the country's 133 airports in terms of passenger and freight throughput.

Located in the centre of the Yangtze River Delta - China's economic powerhouse, Wuxi neighbours Nanjing and Shanghai and is one of East China's transportation hubs.

With a land area of 4,788 square kilometres and a population of 4.47 million, the city has a long tradition of industrial and commercial development.

A century ago, it was home to China's first modern industrial and commercial enterprises.

With an average annual temperature of 16 C and an excellent natural environment, Wuxi offers good living conditions.

Today, occupying 0.05 per cent of the nation's land area, and home to 0.4 per cent of its population, Wuxi generates 4.5 per cent of China's total economic volume.

The city's per capita output value amounted to US$6,200 last year, making it the foremost among Chinese cities.

Wuxi also has strong education and technical research sectors.

The city's 11 higher learning institutions have provided many qualified professionals, much needed for the development of high-tech industries.

The city administration has also set up science parks, software parks, key laboratories and engineering centres to foster technical innovation.

Wuxi is also one of the most important manufacturing centres in the Yangtze River Delta.

Its pillar industries, including electronics, machinery and automobile, textile and garments, biological pharmaceuticals, and new materials, have contributed to more than 50 per cent of Wuxi's gross domestic product.

Wuxi now ranks seventh among China's large and medium-sized cities in terms of industrial scale.

It is also an important production base for integrated circuit chips, electronic components and optical communications products.

The city's solid industrial foundation makes it possible to develop other industries, especially the service industry.

Thanks to its high growth and ever-increasing potential, the city is witnessing a rapid rise in foreign investment.

So far, more than 8,800 foreign enterprises have landed in Wuxi, with 116 projects funded by 63 companies out of the world's top 500.

Wuxi's trading partners are from over 180 countries and regions.

Shandong Airlines Opens Routes Between Shandong and Hong Kong
20 January 2006
China Industry Daily News

Shandong Airlines Co. Ltd opened three new air routes to Hong Kong on January 17th, including the Jinan-Hong Kong route, Yantai-Hong Kong route and Qingdao-Hong Kong Route, the Ta Kung Pao paper reported on Wednesday.

The Boeing 737-300 planes will be used on both the Jinan-Hong Kong route and Yantai-Hong Kong route. Planes will set off from Jinan airport and Yantai airport in the afternoon on each Tuesday and Friday, and arrive at Hong Kong on the same day. The planes then will fly back from Hong Kong after an hour layover, and arrive at Jinan and Yantai in the evening on the same day.

Boeing737-300 planes will be used on the Qingdao-Hong Kong route. A plane will leave Qingdao airport in the morning of each Tuesday, Thursday and Saturday, and arrive at Hong Kong on the same day.

天鷹航機兩度故障
200旅客受阻
02/02/2006

【本報訊】泰國天鷹航空公司一班往曼谷航機，昨兩度發生故障無法起飛，二百名赴泰度歲的乘客包括多個旅行團苦候十多小時，由清晨至夜晚仍未能起程，期間飛機一度載乘客駛出跑道，其後折回停機坪，乘客不滿鼓譟，航班於晚上九時許起飛，但部分乘客拒絕登機。故障客機的航空公司發言人表示，會對受影響乘客作出賠償，但拒絕透露詳情。

該航班的乘客表示，全機有數個旅行團，共約二百人，部分人早於凌晨三時許已抵達機場集合，航班原定早上七時半起飛。乘客盧小姐稱，航機至十時許仍未起飛，機艙服務員突然要求乘客下機，聲稱飛機「爆胎」。

至下午五時半，旅客再獲安排登機，機上亦有廣播表示航機「絕對無問題」，但飛機駛至跑道中央卻未有起飛，並不停繞圈，半小時後折返停機坪，機組人員廣播表示，不欲繼續旅程的乘客可帶同行李下機，乘客十分憤怒，有團友報警求助。

乘客中包括關鍵旅行社四個旅行團，共一百四十四人，旅行社發言人稱因航班延誤，決定取消旅行團，並會全數退回團費，又表示會向航空公司索取賠償。 http://the-sun.orisun.com/channels/img/endmarker.gif

Thai Sky travellers denied full payout after debacle
3 February 2006
South China Morning Post

Frightened holidaymakers who were marched on and off a defective airliner twice and endured an aborted takeoff because a wheel needed replacing were denied full compensation when they refused to board the flight to Bangkok.

Thai Sky initially refused to reimburse passengers directly, and limited refunds to the value of their air tickets.

Yesterday, legislator Yeung Yiu-chung helped about 30 passengers crowding the budget airline's Tsim Sha Tsui office negotiate an increase in compensation to $2,500 a head - still far short of the $4,000 most had paid for a five-day flights-and-hotel package.

The two-year-old airline operates two Lockheed TriStar jets, one 28 years old, the other 31 years old, on passenger services, and began servicing Hong Kong in May.

After takeoff was aborted on Wednesday morning, passengers were told at 10am a wheel needed replacing, and they got off the plane. They boarded again at 5pm, but at 6.30pm were told more parts needed replacing. Passenger Kevin Sze demanded the flight crew promise not to fly it on safety grounds. When they insisted they would fly it, he called police.

Meanwhile, tourists returning from Bangkok to Hong Kong refused to board the airline's other jet, citing safety, an internet report claimed.

Some finally agreed to fly, and the flight arrived more than 12 hours late at 6.10am yesterday, the report said.

Thai Sky Airlines declined to comment.

Near record low visibility hits airport
3 February 2006
South China Morning Post

Visibility levels at the airport have been at near record lows as hazy weather marked the first month of the year.

For January, visibility was below 8km for 449 hours, the second worst figures since the airport opened in 1997 and 237 hours more than the average. The worst month was January last year, when the Observatory recorded 484 hours of poor visibility at the airport.

Observatory scientific officer Cheung Ping said the trapping of pollution particles, especially at Chap Lap Kok, caused the problem.

"There are always winds blowing from the sea to the area and its natural landscape means pollutants will often stay there, affecting visibility," he said.

The Observatory also reported that temperatures last month were warmer than usual. The mean temperature was 16.4 degrees Celsius, 0.6 degrees above normal.

A bigger difference was seen from the mean daily minimum, which was 14.7 degrees, 1.1 degrees higher than normal.

The mean daily maximum, however, was 0.2 degrees lower than normal at 18.4 degrees. The city recorded its lowest temperature of the month, 8 degrees, on January 7.

At 16.3mm, the month's rainfall was 7.1mm less than normal. The mean relative humidity had been 79 per cent, 8 per cent higher than usual.

Dragonair Launches Flights To Shenyang
6 February 2006

HONG KONG (Dow Jones)--Hong Kong Dragon Airlines Ltd. said Tuesday it will launch thrice-weekly flights to the northeastern Chinese city of Shenyang, beginning March 30. Shenyang, which will be the 23rd Chinese city served by Dragonair, became one of the locations covered by the Individual Travel Scheme in November. The scheme allows residents of selected mainland cities easier access to Hong Kong. Dragonair is Hong Kong's second-largest airline; its shareholders include China National Aviation Co. (1110.HK), CITIC Pacific Ltd. (0267.HK), and Cathay Pacific Airways Ltd. (0293.HK)

HK Air Cargo Terminal Jan Vol Up 9.6%
8 February 2006

HONG KONG (Dow Jones)--Hong Kong Air Cargo Terminals Ltd., or Hactl, said Wednesday its January cargo throughput rose 9.6% from the year-earlier period to 191,488 tons. Hactl, which handles about 80% of air cargo traffic passing through Hong Kong, attributed the rise to strong growth in transshipments, which rose 30% to 31,971 tons. Exports grew at a more moderate pace of 9.7% to 107,959 tons.

HK Express to drop Guangzhou services
9 February 2006
South China Morning Post

Small airline Hong Kong Express will scrap its Guangzhou leg - one of the shortest hops in the aviation business - at the end of the month due to low passenger numbers and heavy competition.

With a shuttle service that can barely compete with the two-hour train trip for convenience, Hong Kong Express said it would end its four daily flights to concentrate on other mainland destinations.

"We will leave Guangzhou until more commercial agreements can be obtained," Hong Kong Express director James Yeung said.

After six months of operation, the load factor - the percentage of seats occupied by paying passengers - fell short of the 30 per cent target, revealing how difficult it is for an individual carrier to gain a foothold in Hong Kong without support from the major carriers.

Hong Kong Express had hoped to connect long-haul passengers with Guangzhou but without interlinking agreements with Cathay Pacific Airways or United Airlines, the load factor fell short of the target.

"We will focus more on the central and eastern part of China," chief executive Andrew Tse said.

Meanwhile, travellers using the airline between Hong Kong and Hangzhou rose 31 per cent last year.

Mr Tse added that the increasing number of direct flights into Guangzhou was edging out Hong Kong as the gateway to China.

The carrier plans to begin services to Nanjing in April, starting with one daily flight and possibly two flights longer term. In addition to its existing destinations of Hangzhou and Ningbo, Nanjing would be the third prong of its mainland business plan.

"Travel agencies usually include Hangzhou, Suzhou, Shanghai and Nanjing in one tour, a popular round trip with Hong Kong people. It's better if we can provide them with more options," Mr Yeung said.

He said the airline would sell tickets through Hangzhou with a return via Nanjing and vice-versa.

10 February 2006
Dragonair Daily Passenger Record Set at End of Lunar New Year Holidays
Corporate Press Release

(HONG KONG) A record for the number of passengers carried in one day was set on February 5, at the end of the Lunar New Year holidays.

Some 20,892 passengers travelled with the airline, the first time it has flown more than 20,000 people in a single day. The previous record of 19,537 passengers was set on October 23 last year.

"Clearly this was the busiest Lunar New Year in our history," said Dragonair CEO Stanley Hui. "We operated a high number of additional services over the holiday period to cater to the demand from travellers, both people returning home to their families and those flying for leisure trips. Many will have been returning to their work base or home last weekend.

Dragonair operated eight additional flights on Sunday, and a total of 82 during the Lunar New Year period from January 20 to February 12.

"It has been a great start to the Year of the Dog in terms of passenger numbers, and we hope the traffic momentum can be maintained," said Mr. Hui. "That said, high fuel prices continue to have a major impact on the performance of the airline overall".

Private jet use takes off in Hong Kong
A growing number of businessmen are opting for the service which allows them easier check-ins and faster clearance through immigration, writes Chris Davis
12 February 2006
South China Morning Post

Flying by private jet for Hong Kong businessmen is beginning to take off after a slow build-up.

While many of Hong Kong's famously budget-minded wealthy residents remain content to fly economy class, a growing number of the local jet set who have long been jetless are relishing the freedom of either chartering or buying their own private aircraft.

Last year the Business Aviation Centre (BAC) at Chek Lap Kok handled nearly 3,000 departures and arrivals, compared with 340 flights handled in 1998 when the centre opened.

Madonna Fung, general manager of the BAC, which caters for private jet travel in and out of Hong Kong, said: "We expect business to continue growing as more executives use private aviation as a time-saving tool and authorities around the region streamline the landing and departure procedures."

Owning or chartering the hottest travel accessory, the PJ or private jet, is the ultimate status symbol, with a price tag of more than US$30 million to buy a top-of-the-range Gulfstream G450 and upwards of US$3,000 per hour to charter an aircraft. Private aviation is out of reach of most; however, the PJ does offer significant advantages - no checking in and it normally takes only a few minutes to clear customs and immigration. Passengers can also arrive for departure just a few minutes before the aircraft is due to take off.

"It is a case of the plane is waiting for you, instead of you waiting for the plane,'' said Ms Fung. "A private jet, even one chartered for a single trip, waits on the tarmac at the user's convenience."

According to Ms Fung, contract-clinching business deals, which can be difficult to co-ordinate when relying on rigid commercial airline schedules, privacy and security are the chief reasons why executives are switching to private air travel. During last year's World Trade Organisation meeting many of the politicians and business leaders attending the function made use of the BAC facility. Ms Fung said those in Hong Kong switching to private aviation tend to be mainly business executives and a few show business celebrities.

The BAC has its own terminal and facilities separate from the public terminal where aircraft pull up just a few metres from the main door.

The centre offers a full range of services for executive aircraft and passengers, including passenger lounge, private rooms and showers, business-centre facilities, ground handling, baggage handling, fuelling, security, customs and flight planning. Designated spaces and hangers are also provided for private aircraft.

The BAC has its own immigration facilities and a detention room to question and detain anyone who violates Hong Kong's customs or immigration laws. To date the only time the door has been opened is for cleaning purposes.

The biggest headache that charter companies face is in getting aviation authorities to relax flight restrictions, says Michael Csapo, the Hong Kong-based operations director for Switzerland's Jet Aviation, one of the world's biggest luxury-charter companies. It can still take weeks to get approval to land in many Asian airports. Singapore and Hong Kong are the exceptions where arrangements can be made in a matter of hours, but this is still too slow.

"Compared to the four hours in turnaround time in the US, Australia and Europe, this is a serious drawback that is hampering the development of Hong Kong and the region's private aviation industry," Mr Csapo said.

While business confidence is one important factor, there is the stigma of corporate excess and the high cost.

He said benefits of using private jets become even more obvious when taking into account complaints common among airline passengers. These include cramped seats, mishandled luggage, long lines through security, immigration and check-in, delays and cancellations, and missed connections.

Asian Aerospace will move to Hong Kong 13/Feb/2006

Asian Aerospace Will Move To Hong Kong
Reed Exhibitions has confirmed that the new venue for its flagship international aerospace industry event, Asian Aerospace, will be in Hong Kong.

The world’s leading organiser of trade and consumer exhibitions will stage the next presentation of Asian Aerospace from September 3-6, 2007 at the brand new, ultra-modern AsiaWorld-Expo complex, which is adjacent to and integrated with the Hong Kong International Airport (HKIA).

2月 13日 星期一 18:25 更新

一直在新加坡舉行的亞洲最大航空展覽將於2007年移師香港的香港亞洲國際博覽館，展期將於9月3至6日。

擁有亞洲航空展品牌的英國展覽公司勵展博覽集團（Reed Exhibitions）宣布，將於2007年移師香港展出，他們將於本周三公布詳情。而在新加坡最後一屆的航空展覽將於下周舉行，預計可吸引27000人。

較早時有報道指，勵展博覽集團在去年十月份時，因新加坡政府可能不會為航空展開發新的展覽場地後，決定要把航空展遷到他處舉辦。

明報

Asian Aerospace Exhibition To Move To Hong Kong In 2007
13 February 2006

SINGAPORE, Feb 13, 2006 (DJCS via Comtex) -- Asian Aerospace, one of the biggest aerospace and defense technology exhibitions in the region, plans to move from Singapore to Hong Kong in 2007, following disagreements with the government over a new site, organizers said.

The aviation event will be held Sept. 3-6 next year at the AsiaWorld-Expo complex, next to Hong Kong International Airport, the show's organizer, Reed Exhibitions, said in a statement.

The final Asian Aerospace exhibition in Singapore takes place next week and is expected to draw 27,000 visitors.

Singapore's Economic Development Board said in October that the show would not be held in Singapore after this year because it was unable to agree with organizers on a new site. The existing site is being redeveloped for an expansion of Changi International Airport.

At Asian Aerospace 2004, 750 exhibitors from 33 countries participated, culminating in deals worth over US$3.5 billion.

Past Asian Aerospace events have drawn big aircraft makers such as Boeing Co. and Airbus, as well as a range of airlines, and have been the occasion to announce big deals.

-Edited by Paul Baylis

The information seems to be scattered across different articles. Here's another one :

Hong Kong to host Asian Aerospace airshow in 2007

SINGAPORE, Feb 13, 2006 (AFP) - One of the world's top airshows will move to Hong Kong in 2007 after it takes off for the last time in Singapore, organiser UK-based Reed Exhibitions said Monday.

Next year's instalment of Asian Aerospace, the largest in the region, will be held from September 3-6 in the southern Chinese enclave's AsiaWorld-Expo complex adjacent to Hong Kong International Airport, it said.

"Reed Exhibitions has confirmed that the new venue for its flagship international aerospace industry event, Asian Aerospace, will be in Hong Kong," the show organiser said in a brief statement.

It said further details will be released at a press conference in Hong Kong on Wednesday.

Asian Aerospace has been held every two years in Singapore but next week's instalment will be the last in the city-state after Reed Exhibitions and the Singapore government could not agree on the terms for developing a new site for the event.

The government's Economic Development Board announced last October the city-state would organise its own global airshow from 2008 at a new 24-hectare (59.3-acre) site.

A new firm -- a joint venture between the country's civil aviation authority and the Defence Science and Technology Agency -- will run the event every two years.

At the 2004 Asian Aerospace show, a record 3.52 billion US dollars worth of deals were signed.

Ed Ng, president of Asian Aerospace 2006, said more than 900 exhibitors from 43 countries are expected at this year's show which will feature the world's top aerospace and defence companies.

A highlight will be the arrival of the double-decker Airbus A380 in the colours of Singapore Airlines, which will be the first airline to operate the world's largest commercial aircraft.

Hong Kong Express on course for growth despite Guangzhou blow
Alman Loong in Ningbo
13 February 2006
Hong Kong Standard

Small airline Hongkong Express plans to add a daily charter service to Taiwan to strengthen its network and focus more on the central and eastern part of the mainland after the company scraps its Guangzhou route early next month.

The company also expects to lease a fleet of Boeing 737s or Airbus A320s to enable it to service more destinations out of the reach of its 76-seater Embraer 170 turboprops, said commercial director James Yeung.

He said the new destinations will have flight times of more than three to four hours.

The startup airline, owned by the family of casino tycoon Stanley Ho, began flying to Guangzhou last September and to Hangzhou in November.

But the load factor of both routes _ the percentage of seats occupied by paying passengers _ fell to 10 percent.

Yeung said the company had cut down on flight frequencies to save costs. It has to pay HK$70,000 and HK$140,000 per flight on the Guangzhou and Hangzhou routes.

``However, there was no huge improvement so we decided to scrap the Guangzhou flight and March 5 will be the last flight on the Guangzhou route,'' Yeung said in Ningbo.

He said the company initially wanted to capture passengers transferring from international flights and traveling on to Guangzhou.

The company hopes to build up its brand name through marketing and reach commercial agreements with international airlines such as Cathay Pacific and United Airlines to strengthen its ability to compete.

Fierce competition among airlines will drive down fares. Yeung said China Eastern Airlines and Dragonair provide service costs ranging from HK$700 to HK$1,600 return to and from Hong Kong and Hangzhou. It is hard for the company to improve its earning yield.

On its Ningbo route, the company has recorded a 30 percent to 40 percent load factor since starting the service at the end of last year as more business travelers are flying between Hong Kong and Ningbo.

Hongkong Express still plans to add services to Nanjing and Chongqing in April and May, starting with one daily flight and possibly two flights longer term. It also expects to provide charter flights to Taichung, Taiwan, in April.

``We applied for the license a long time ago and obtained a license to launch services last year,'' Yeung said.

He hopes there will be strong demand for travel between Hong Kong and Taiwan.

The company said last year its first four turboprops will cost US$80 million (HK$624 million). It plans to add one or two planes per year over five years _ jets as well as turboprops _ to achieve its goal of serving 12 to 15 mainland cities.

Yeung said it has enough operating funds despite huge spending, which will erode its earning yield.

Hongkong Express received licenses to fly passengers to 12 secondary mainland destinations last May.

Executive director Andrew Tse said it may seek landing rights in Haikou, Sanya, Shantou and Zhengzhou. It also hopes to secure rights to Thailand's Koh Samui.

Wednesday February 15, 10:38 AM
HK PRESS:HK Carriers May Get OK To Fly Overseas Via China

HONG KONG (Dow Jones)--Hong Kong airlines may soon be allowed to fly to other countries via cities in mainland China, giving them access to the country's lucrative market for international flights, the Chinese-language Wen Wei Po reported Wednesday.

Citing an industry source, the report said the General Administration of Civil Aviation of China will soon introduce a number of "progressive liberalization measures," which include offering fifth-freedom rights to Hong Kong-based airlines in an unspecified number of mainland Chinese cities.

Fifth-freedom rights allow airlines to carry passengers to one country and then fly on to another, rather than having to return to the country of origin. Hong Kong is considered a separate jurisdiction from China under international aviation agreements.

Hong Kong airlines including Cathay Pacific Airways Ltd. (0293.HK) and Dragon Airlines Ltd. have applied to the Chinese authorities for fifth-freedom rights, the source said, according to the report.

The person said Cathay Pacific would be the first airline to be granted fifth-freedom rights for cargo flights. Rights for passenger services would be liberalized at a later stage, the report said.

Newspaper Web site: http://www.wenweipo.com

HK Airport Authority In JV With Zhuhai Airport
17 February 2006

HONG KONG (Dow Jones)--Hong Kong's Airport Authority said Friday it received Chinese government approval to form a joint venture to operate the airport in the nearby Chinese city of Zhuhai, in a plan that could help Hong Kong fend off growing competition from lower-priced transport hubs in southern China.

Analysts said the proposed agreement could enhance Hong Kong airport's flexibility in handling an expected surge in air-cargo traffic amid booming trade growth in the Pearl River Delta, south China's industrial hub.

"We welcome the decision of the General Administration of Civil Aviation of China to approve the joint venture cooperation agreement (with Zhuhai airport)," an Airport Authority spokesman said.

However, he declined to provide further details of the agreement with Zhuhai Airport Group Corp., which operates Zhuhai airport. "We are working out the details and will issue more information in due course."

A spokesman for Zhuhai Airport Group declined to comment on the agreement, though another company official, who asked not to be named, confirmed that an agreement with Hong Kong's Airport Authority "will be completed shortly."

Hong Kong's Chinese-language Ming Pao newspaper reported Friday the Airport Authority will invest about CNY200 million for a 55% stake in a joint-venture company that will manage Zhuhai airport for a period of 20 years.

Citing sources, the report said Zhuhai Airport Group will hold the remaining 45% stake in the venture, which won't own any of the airport's assets nor take on the airport's outstanding loans.

"The joint venture will strengthen ties between Hong Kong and the Pearl River Delta, benefiting both Hong Kong and Zhuhai," the Airport Authority's spokesman said. "Both cities will see greater economic benefits as both cargo and passenger traffic continues to grow in the region."

Analysts said Zhuhai's underutilized facility could complement Hong Kong's role as a major air-cargo hub in southern China.

"Zhuhai could help alleviate pressure on Chinese air-cargo traffic currently passing through Hong Kong," said Alan Lam, an analyst at Guotai Junan Securities.

"With strong growth in air cargo, Hong Kong's airport will eventually reach its handling capacity. Zhuhai could become a feeder airport for cargo traffic."

Hong Kong's airport handled 3.4 million tons of cargo last year, up 10% from 2004. The cargo facility had capacity of just 3.0 million tons per year when it opened in 1998, though expansion plans are underway. The Airport Authority expects cargo throughput to reach 4.3 million tons by 2010.

Lower handling charges in Zhuhai will also attract cargo carriers to use its facilities, given that adequate investment is committed to improve surrounding infrastructure.

"The major problem with Hong Kong is its high landing fees. Cargo airlines such as FedEx have set up bases in Guangzhou and elsewhere to take advantage of cheaper fees," said Karen Chan, a transport analyst at Credit Suisse in Hong Kong.

Chan said it may take considerable time for synergies in cargo to emerge due to a lack of convenient connections to the airport. More roads need to be built to facilitate access to the airport, she said.

For Hong Kong's Airport Authority, the deal could help boost the government-owned operator's profitability in the long term, analysts said.

If successful, the venture will be the Airport Authority's second acquisition in the mainland China airport market. In April, it bought a 35% stake in Hangzhou's Xiaoshan International Airport for CNY1.9 billion.

The Zhuhai airport, which is located to the west of the Pearl River Delta, stands to benefit greatly from the Chinese government's planned development of western Guangdong province, said Guotai Junan's Lam.

"Ultimately, both passenger and cargo traffic will see strong potential as the region develops. The area is still very underdeveloped compared with cities in the eastern part of PRD," said Lam.

Opened in 1995, Zhuhai's airport has struggled to attract airline traffic amid intense competition with nearby airports in the Pearl River Delta.

According to its Web site, the airport handled 13,705 tons of cargo in 2004 and just 753,900 passengers in that year, the last year for which figures are provided, making it the least busy of the five airports in the region. It is also the only airport in the Pearl River Delta that doesn't offer scheduled international flights.

By contrast, Hong Kong's airport handled 38 million passengers in the same year, making it the busiest airport for both passengers and cargo in the Pearl River Delta.

Apart from Hong Kong and Zhuhai, the region's other airports are located in the cities of Macau, Shenzhen and Guangzhou.

Hong Kong’s days of dominance may be over
Guangdong facilities vie for volumes, writes Keith Wallis
17 February 2006
Lloyd's List

HONG Kong, for so long the gateway into and out of southern China, is having its position as a logistics hub gradually threatened by rival facilities across the boundary in China’s Guangdong province.

Last year, Hong Kong lost out to Singapore for the first time in seven years as the world’s biggest container port, after it handled 22.43m teu compared to the lion state’s 23.19m teu.

But the position of these cities as major box ports is being challenged by the pace of growth in two Chinese cities — Shanghai and Shenzhen — where container volumes rose by about 20%. Consequently, analysts believe it can only be a matter of years before the two Chinese ports take the top two spots from Singapore and Hong Kong.

In air cargo, Hong Kong’s Chek Lap Kok international airport is facing no less of a challenge from the new Baiyun international airport which opened last year on the outskirts of Guangzhou, about 125 km north-west of Hong Kong.

While Baiyun’s international cargo connections are still at a fledgling stage, they will receive a significant boost in 2008 when Federal Express moves its Asia-Pacific to the airport from its existing facility at Subic Bay in the Philippines.

But Hong Kong is also fighting back. DHL, the air express subsidiary of Deutsche World Post, recently announced an US$110m expansion of its existing hub at Hong Kong airport that will nearly double the size of the complex from 18,200 sq m to 35,000 sq m. This follows a surge in business, from 22m shipments in 2004 to 30m packages last year, after it took a 40% stake in Air Hong Kong and launched overnight express cargo services to a raft of Asian cities. The Tradeport company, which operates a US$64m 41,000 sq m logistics complex at Chek Lap Kok airport, is planning to add an extra floor to its three-storey facility to cope with increased demand. The firm, whose shareholders include Fraport, the Frankfurt airport operator, and Schiphol, the Dutch airport group, is also supporting the development of a US$1.3bn 72 ha logistics park the Hong Kong government is planning to 5km from the airport.

Airport Authority chief executive David Pang says the facility will handle time-sensitive consignments such as electronics, computer equipment, aerospace components and other high-value products.

The Hong Kong is also working on several initiatives to enhance the logistics industry. These include the creation of a Digital Trade and Transportation Network that will facilitate the electronic transfer of data and information between companies in the supply chain. The DTTN company has already been created but local legislators are balking at the government’s plan to spend HK$31.5m (US$4m) to take a stake in the company. The government and lobby groups believe the investment is crucial if the system’s neutrality and confidentiality.

Hong Kong officials have also agreed with their counterparts in neighbouring Guangdong province to ease restrictions on the movement of trucks and containers between factories in southern China and Hong Kong port. The move would increase efficiency and help reduce the cost of trucking containers across the boundary.

The relatively high cost of moving containers between Hong Kong and southern China is seen as contributing to the high throughput volumes at the nearby Shenzhen ports to the detriment of Hong Kong. But it remains to be seen whether these and other measures are viable in the long-term, or even supported by the authorities in southern China. Industry observers have questioned why China customs, for example, would be willing to make concessions that would only benefit Hong Kong logistics operators.

Hong Kong Express Strengthens Sales
Corporate Press Release

Hong Kong, February 1st 2006 … Hong Kong Express Airways has appointed Simon Sin to the newly created role of General Manager for Sales. Reflecting the airline’s successful achievement of its first phase launch and growth objectives, Simon’s promotion from Revenue Manager to General Manager for Sales ushers in a new chapter in Hong Kong Express’ strategic business development.

With immediate effect, Simon will assume responsibility for all Hong Kong Express sales activities, as well as matters relating to revenue management and distribution. Since starting his career in 1979 with Cathay Pacific where he remained for some 19 years before joining Dragonair where he was most recently responsible for revenue planning and systems, Simon has worked extensively in revenue management and is well placed to drive forthcoming route expansion.

Commenting on this latest appointment, Dr James Yeung, Hong Kong Express Airways Commercial Director said, “Simon’s background in revenue and distribution management made him the natural choice for this new position. I am confident that under his expert leadership, our sales division will flourish and I wish him every success in his new role.”

Mr Sin is a graduate of the University of Hong Kong from where he obtained his Masters in Business Administration in 1997.

HK air passengers up 16 pct from yr ago, cargo up

HONG KONG, Feb 19 (Reuters) - Passenger traffic through Hong Kong's international airport jumped 15.9 percent in January from the same period a year ago and continued growth in exports and transhipment of air cargo drove up cargo throughput, the territory's Airport Authority said.

The airport handled 3.5 million passengers in January, with growth fuelled by robust passenger traffic during the Lunar New Year holidays, the authority said in a statement.

The airport, the home base of Cathay Pacific Airways Ltd. , handled 273,000 tonnes of cargo in January, up 10.5 percent from the same month in 2005.

The authority said the strong growth in air traffic would boost demand for aviation fuel by at least 7 percent in 2006.

The average consumption of aviation fuel was at 14.7 million litres per day in 2005, it added. (US$=HK$7.8)

There is a more information in this article :

HK Intl Airport Jan Passenger Traffic +15.9%;Cargo +10.5%
19 February 2006

HONG KONG (Dow Jones)--Passenger traffic at Hong Kong International Airport rose 15.9% in January from a year earlier, boosted by Chinese New Year holiday travel, the city's airport authority said.

Passenger throughput rose to 3.51 million in January, from 3.03 million, Airport Authority Hong Kong said in a statement dated late Sunday.

The authority said around 500 additional passenger flights were added between Jan. 24 and Feb. 9 for the Chinese New Year holiday.

Last year Chinese New Year fell in February.

Average daily passenger throughput in January rose 9% to 127,000.

Aircraft movements increased 13.7% to 23,100 in January, from 20,340 in January 2005, on 'robust passenger traffic' it said.

Cargo traffic rose 10.5% on year to 273,000 metric tons, from 247,115 tons in January last year.

The strong growth in air traffic stimulated demand for aviation fuel, said Hans Bakker, commercial director of Airport Authority Hong Kong.

He estimated the average daily consumption of aviation fuel will rise by at least 7% this year, from 14.7 million liters last year.

Bakker said in the statement the airport's daily fuel consumption rose 44% over the past seven years.

'It is crucial for us to have sufficient and timely supply of aviation fuel to sustain the growth of the airport and Hong Kong,' said Bakker.

Airport Authority said late last month it plans to spend HK$4.5 billion over the next four years to boost its handling capacity.

Opened in 1998, Hong Kong Chek Lap Kok airport operates 5,000 flights a week, with a capacity to handle 45 million passengers a year. The Hong Kong government owns 100% of the airport authority, but has plans to sell part of its interest. Executives have said a stock market listing is likely in 2006.

Dragonair Jan Passengers Up 17.6%, Cargo Up 5.3%
20 February 2006

HONG KONG (Dow Jones)--Hong Kong's Dragon Airlines Ltd. said Monday its passenger traffic in January rose 17.6% from the year-earlier month, on an increase in travelers over Chinese New Year.

Hong Kong's second-biggest airline by revenue, after Cathay Pacific Airways Ltd. (0293.HK), carried 398,463 passengers in Jan, up from 338,903 in the year-earlier month.

In December, its passenger traffic rose 6.8% from the year-earlier month. Its cargo volume in January rose 5.3% to 31,341 tons.

'The increase was mainly attributable to greater capacity compared with last year,' said Dragonair CEO Stanley Hui. 'Month-on-month the figure was lower, as expected, given that the start of the year is always quieter following the end of-the-year peak.'

For full-year 2005, Dragonair carried a record 5.03 million passengers, up 9.9% from the previous record of 4.58 million in 2004. Its cargo volume last year rose 12.5% to 385,000 tons from 342,413 tons.

From Hong Kong, Dragonair flies to more than 30 destinations across the Asia-Pacific region, while its cargo network connects Europe, the Middle East, Japan, Taiwan and China.

The unlisted company's major shareholders are China National Aviation Co. (1110.HK), which holds a 43.3% stake; CITIC Pacific Ltd. (0267.HK), with 29.4%; Cathay Pacific, with 17.8%; and Swire Pacific Ltd. (0019.HK), which holds 7.7%.

Air and sea ports make impact
23 February 2006
South China Morning Post

The Pearl River Delta is serviced by five airports - Hong Kong, Guangzhou, Macau, Zhuhai and Shenzhen - each with their own airspace procedures. Pilots approaching from the north must navigate through each airspace before landing at Hong Kong's International Airport, which means extra flight time - and more fuel being burned.

Captain Russell Davie, airline operations manager for Cathay Pacific, says these restrictions result in an extra 25,000 tonnes of fuel burned each year by Cathay flights alone.

Giovanni Bisignani, director-general of the International Air Transport Association (Iata), priced the inefficiency at US$400 million, reported earlier by trade magazine Orient Aviation. "This unnecessary cost to airlines and the environment is not acceptable. Iata is working closely with all parties to rationalise the situation."

Given the high altitude at which jet fuel burns and its relatively high quality, the impact of this inefficiency on Hong Kong's air pollution is tenuous at best. The carbon dioxide emitted as a result, however, does have implications on global warming.

There is also increasing attention paid to the pollution that shipping generates, given 172,080 vessels arrived in the city in the first nine months of last year. Under present international regulations, the sulphur content of bunker fuel could be as high as 4.5 per cent. Hong Kong's diesel for road vehicles has a sulphur content of 0.005 per cent.

Government statistics for 2003 showed "navigation" accounted for just 4 per cent of sulphur dioxide emissions and 15.7 per cent of nitrogen oxide emissions. But environmental groups say the toxic fumes are emitted close to ground level, and pollutants blow directly into heavily populated areas.

From news.gov.hk:
HK develops pioneering air safety system (http://news.gov.hk/en/category/infrastructureandlogistics/060220/html/060220en04002.htm)

Fast-rising Qatar Airways talks new planes, new routes

SINGAPORE, Feb 23, 2006 (AFP) - Fast-rising Middle East carrier Qatar Airways was talking new planes and new routes Thursday, announcing plans for major new destinations and saying it is in negotiations to buy 20 new aircraft.

The airline said it was in talks with both European manufacturer Airbus and US rival Boeing for the aircraft orders, while planning route expansion to New York, Hong Kong and Australia this year.

Chief executive Akbar Al-Baker said the airline expects to make a decision by the end of March on its choice between the Boeing 777 or the Airbus A340 family.

"We are at the moment talking to both aircraft manufacturers for the additional order for 20 aircraft to see us through the end of this decade," Al-Baker told the Foreign Correspondents Association.

Qatar Airways currently has an all-Airbus fleet of 44 planes and is a launch customer of the double-decker A380, the world's biggest passenger liner, which the carrier will start to operate in early 2009.

Asked why the carrier was talking to Boeing when it already has an all-Airbus fleet, Al-Baker said it was because the US aerospace giant "makes very nice airplanes too."

Al-Baker said he had held meetings with Boeing and Airbus executives on the sidelines of Asian Aerospace, the world's third-largest airshow which ends here on Sunday.

He said the planned orders will be on top of the 60 "firm orders" for the new-generation A350 aircraft from the European manufacturer.

The fleet build-up is underway as the airline announced a major global expansion drive that aims to add 10 new destinations a year.

"Our global expansion plan is huge," said Al-Baker, adding this is part of an overall vision to transform Qatar into a tourism hub in the Middle East with the construction of a new state-of-the-art airport in the capital Doha.

Qatar Airways currently flies to 69 destinations including Europe, the Middle East, Africa, India and Asia, which Al-Baker described as "the centre of economic development over the next decade."

It plans to add 10 more destinations this year, including New York, Hong Kong and Australia, he said, declining to name the seven other routes.

The airline has been flying to cities which many of its competitors are avoiding including Yangon, the main city in military-ruled Myanmar, Alexandria in Egypt and Cape Town in South Africa.

"Of course people must be thinking that we were crazy when we launched Yangon. They said, 'who is going to go to Yangon?' But I'm really proud to say that... we are offloading passengers on our Yangon flights," he said.

He said almost 70 percent of available seats to Yangon are taken.

Al-Baker said the airline plans to have a fleet of 110 aircraft by 2015, including four of the giant 555-seat double-decker Airbus A380 -- which it will start operating from 2009 -- and 60 long-range A350 aircraft.

"These 60 are firm orders," Al-Baker said.

Qatar Airways will also be the first airline in the world to operate the long-haul A340-600, which Al-Baker said has been especially developed by the European aircraft-maker for Qatar Airways.

The A340-600 "will give us the capability to operate from our hub in Doha directly to Australia and directly to several cities on the eastern seaboard of the United States," he said.

Al-Baker said the airline considered Boeing's 787 Dreamliner but went for the A350 instead because Airbus gave it a "very good deal."

With its major fleet build-up, Qatar Airways hopes to add around 10 new destinations every year from 2005. By 2010 or 2011, it expects to be flying to between 100 and 115 destinations worldwide.

Relaunched in 1997, Qatar Airways has received several accolades, including four in November last year at the World Travel Awards in London. One of the awards was for best inflight service.

UPS to increase number of flights and employees as demand soars
24 February 2006
South China Morning Post

United Parcel Service will increase flights to the United States to three times a day this summer and is expanding its workforce in Hong Kong to keep up with strong demand for high-value products manufactured in the Pearl River Delta.

Asia's No3 express company by volume has boosted its monthly payroll in Hong Kong by about $500,000 since December, increasing the local ranks about 15 per cent to 750 employees to service a booming export-driven express business.

"We are very comfortable about the future of Hong Kong," said Leung Kwok-kei, the general manager for Hong Kong and Macau. "The 100 people we have hired are permanent employees."

UPS will increase the outbound flights to its US hub through Anchorage by August at the latest, maybe sooner, offering south China's exporters 240 tonnes of capacity a day.

Two of the flights will be scheduled through its Asia-Pacific hub at Diosdado Macapagal International Airport, near Manila. The new service transits Alaska.

"The launch of the new flight will be geared to the timing of the peak season and our ability to make the necessary flight and crew adjustments to capitalise on that," Mr Leung said.

The increased services to the US will complement a daily flight to its European hub in Liege, Belgium, and another daily service directly from Guangzhou. The carrier will also begin flying daily to Europe out of Shanghai in the spring.

It plans to go 24 hours with its local pick-up service from Monday and has recently introduced a dedicated trucking service from Guangdong for shippers who want to simplify the export process.

LCQ7: Aircraft routes between Hong Kong and the Mainland
Wednesday, February 22, 2006
Government Press Release

Following is the question by the Hon SIN Chung-kai and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (February 22):

Question:

Will the Government inform this Council:

(a) of the current number of aircraft routes between Hong Kong and the Mainland, as well as the cities involved;

(b) of the respective numbers of passengers travelling by air from Hong Kong to the Mainland and vice versa in each of the past three years and, among them, the respective numbers of those who transited from Hong Kong to the Mainland and to overseas cities; and

(c) whether it plans to discuss with the relevant departments of the Mainland authorities the increase in the number of aircraft routes between Hong Kong and the Mainland; if so, of the details; if not, the reasons for that?

Reply

Madam President,

(a) The existing Mainland/HKSAR Air Services Arrangement provides for scheduled air services between Hong Kong and 45 cities in the Mainland. Currently, airlines of both sides operate on 40 of such routes, namely -

Beijing, Chengdu, Chongqing, Dalian, Fuzhou, Guangzhou, Hangzhou, Huangshan, Kunming, Lanzhou, Ningbo, Qingdao, Shanghai, Shantou, Shenyang, Taiyuan, Tianjin, Xiamen, Xian, Changchun, Changsha, Guilin, Guiyang, Haikou, Harbin, Hefei, Jinan, Meixian, Nanchang, Nanjing, Nanning, Wenzhou, Wuhan, Yantai, Zhanjiang, Zhengzhou, Sanya, Shijiazhuang, Wuyishan and Urumqi.

The other five points not being served by scheduled services are Shenzhen, Lijiang, Beihai, Luoyang and Zhangjiajie.

(b) Numbers of passengers travelling by air between Hong Kong and the Mainland in the last three years, please refer to the attached annex.

(c) The HKSAR Government and the General Administration of Civil Aviation of China regularly review all aspects of the Mainland/HKSAR Air Services Arrangement, including the number of routes under the Arrangement. Our main objective is to seek to increase the number of routes and capacity for airlines of both sides to develop their businesses and to respond to market needs.

Roissy, 20 February 2006
Corporate Press Release Extract
The Air France 2006 Schedule Summer

For the summer 2006 season, the Air France Group will pursue its profitable growth strategy. Seat capacity (available seat-km) will grow by 5.6% compared with summer 2005 with a 6% increase on the long-haul network, a 6.3% increase on the international medium-haul network and a 1.1% increase on domestic routes.

The long-haul schedule

This summer, Air France will continue to expand capacity on its most buoyant markets, in particular Asia (up 11.4%), Latin America (up 5.5 %) and the Middle East (up 19.7%). Air France will also be developing its presence in Africa (up 11%) and on its oil, gas and mining routes.

These increases in capacity are a result of additional frequencies and the introduction of larger aircraft.

On routes to China, the Air France KLM Group will be offering a fifth destination, Chengdu, operated twice weekly by KLM from Amsterdam. Capacity will increase on flights to Beijing with the arrival of the three-class B777-300ER. There will be a second daily flight to Hong Kong** subject to obtaining traffic rights and Shanghai (ten weekly frequencies to both these destinations), with services to Shanghai supplemented by China Eastern´s daily flight. The Paris - Guangzhou service will be reorganized, with Air France and China Southern both offering three weekly flights to this destination. This summer Air France will be operating 47 weekly services between Paris and China.

Since this winter the Group has been offering customers five destinations in India with the launch of five weekly flights to Bangalore from Paris and three weekly flights to Hyderabad from Amsterdam. These are in addition to the daily services to Mumbai, Delhi and Madras.

Air France KLM now offers 36 weekly flights to India.

On routes to South Africa and Brazil, Air France will be continuing its twice-daily services launched this winter to Johannesburg and Sao Paulo (ten weekly flights).

On our Gulf routes, which are mostly used by our oil and gas industry customers, many new initiatives will be launched.

Air France will be starting a second daily flight to Houston.

There will be daily flights to Teheran, and we hope to obtain traffic rights to also have a daily service to Riyadh. Frequencies will also be increased to Dubai (13/7) and our Dedicate network routes: Malabo (4/7), Nouakchott (6/7) and N´Djamena (5/7).

Hong Kong startup budget airline Oasis delays launch again
28 February 2006

HONG KONG (AP) - Startup discount carrier Oasis Hong Kong Airlines Ltd. has postponed its launch for the second time due to a delay in securing leases on two used aircraft, chief executive Stephen Miller said Tuesday.

The long-haul airline now hopes to start flights between Hong Kong and London's Gatwick Airport by August or September this year. It had earlier targeted a June launch after scrapping its initial plan for beginning flights late last year.

"We had to delay the launch of flights as we try to secure orders on aircraft, but we are now in final negotiations," Miller said. "The aircraft market is really, really tight at the moment."

After launching services to London, the airline will start flights to other European destinations such as Milan, Berlin and Cologne, Miller said.

Oasis has also received rights to fly to the U.S. cities of Oakland, California and Chicago.

Meanwhile, another budget airline, Viva Macau, is expected to decide in a few days on the type of aircraft to use when it begins operations in June, a top company executive said Tuesday.

Viva Macau wants to lease two or three planes, either Airbus A310s or Boeing 767s, depending on their price and availability. The budget airline plans to increase its fleet to 12 aircraft in the future.

"The critical part is to run through the choice of aircraft and the availability of the aircraft," said Andrew Pyne, Viva Macau's chief executive.

"We are now at a very, very final stage of evaluation. I'd expect an announcement on the decision to be made within a matter of days rather than weeks."

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FedEx: Committed to Hong Kong market
Luiz Tung, Managing Director of FedEx Hong Kong and Macau

FedEx Express (FedEx) is deeply committed to the Hong Kong market since entering it in 1984.

We have had our Asia Pacific headquarters in Hong Kong since 1992. Today, FedEx has over 1,000 employees in Hong Kong, nine drop-off locations and 14 drop-off boxes, 11 FedEx World Service Centers, eight stations and one Express Distribution Center.

To continue to meet customers' need and expand our business to stay ahead in the market, various service and infrastructural enhancements have been introduced, including:

* Opening the eighth station in Hong Kong to meet the anticipated increasing customer demands in Hong Kong for logistics related services in earlier this year. Occupying an office and operating center area of 41,000 square feet, the new Tsuen Wan station is strategically situated close to FedEx's customers and the airport, reducing the transportation time to and from the airport for delivery of time-sensitive goods. The new station can handle up to 6,400 packages per hour of any size or shape.

* Extending the call-in cut-off time in Hong Kong by more than two hours to 8:30 p.m. for shipments to Europe in June 2005. The enhanced service provides customers more time and flexibility in preparing and making pick-up arrangements for their shipments.

* Completely deploying a new device for our couriers in Hong Kong, called the FedEx PowerPad in November 2005. FedEx PowerPad will replace the current hand-held courier device, the FedEx SuperTracker, and will act as a personal gateway to convey data directly to and from the FedEx internal network. Bluetooth wireless technology and a General Packet Radio Service (GPRS) connectivity network provide immediate information access, even when couriers are away from their delivery vans, revolutionizing the service level to customers by facilitating faster pick-ups. The new device also enables dispatchers to schedule customer pickups faster and more efficiently.

Looking ahead to 2006, FedEx is optimistic about the prospects of Hong Kong's express and logistics market.

Hong Kong's air cargo industry continued to be robust and enjoyed steady growth in the first half of 2005. Its air cargo throughput at the Hong Kong International Airport reached a record high of 1,120,000 tonnes with a 5.6% growth, when compared with the same period of last year.

Hong Kong retains its importance as a gateway for the Mainland's air cargo in the coming few years and export growth from the Pearl River Delt maintains its momentum. With more than 3 million tons of air cargo being handled through Hong Kong annually, the city is a centre for emerging economies and is closest to the world's fastest developing manufacturing base - China.

We are confident that this growth will continue with strong transit traffic and the economic buoyancy.

03.03.2006
Corporate Press Release
Finnair Steps Up China Frequencies

Chinese destinations are set to receive even better connections with Europe as a result of increased Finnair frequencies. Improved services between Helsinki and Hong Kong, Guangzhou and Shanghai are in response to increased demand. The flights have excellent connections with services between Helsinki and other Finnair destinations in Europe, as well as with services within China and the rest of Asia.

Hong Kong flights will be non-stop as of mid-May, omitting the current landing at Bangkok. The non-stop service continues three times a week until July, when it will be increased to four times a week until the end of October.

The journey time to Hong Kong is reduced by over four hours with non-stop flights. Moreover, passengers can connect smoothly between Hong Kong’s modern and award-winning airport and other destinations in mainland China and south-east Asia. Hong Kong is a favourite tourist destination, with a number of new attractions such as a Disneyland and AsiaWorld-Expo.

Finnair’s popular flights to other Chinese destinations also receive a boost, with Shanghai served seven times a week instead of five as of July and Guangzhou’s three-weekly frequency stepped up to four. Both destinations are favourites for shoppers, as well as being highly significant business centres.

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http://www.tdctrade.com/Photo/cms/article/shippers/37866.jpg

HK Haeco 2005 Net HK$618 Million Versus HK$438 Million
7 March 2006

HONG KONG (Dow Jones)--Hong Kong Aircraft Engineering Co. (0044.HK), or Haeco, posted Tuesday a 41% rise in its 2005 net profit, helped by growth in air traffic and stronger margins.

Net profit in the full-year ended Dec. 31 totaled HK$618 million, up from HK$438 million a year earlier.

Revenue totaled HK$3.12 billion, compared with HK$2.13 billion.

A final dividend of HK$1.1 a share was proposed, up from HK$0.77 in 2004.

Haeco, which is 27%-owned by Cathay Pacific Airways Ltd. (0293.HK) and 32%-owned by Cathay's parent, Swire Pacific Ltd. (0019.HK), provides maintenance services to airports in Hong Kong and China.

Dragonair counts on China for 10pc gains
8 March 2006
South China Morning Post

Hong Kong Dragon Airlines expects passenger and cargo growth of 10 per cent this year, thanks to robust economic growth on the mainland.

The carrier is expanding its routes and fleet in anticipation of stronger demand, and plans to boost its North American all-cargo service from three flights a week to New York to daily services by 2008.

Dragonair's freighter fleet will be expanded to 11 planes by 2008 with the delivery of five converted Boeing 747-400s by 2008.

Two of the converted freighters are scheduled for delivery this year and two next year. The final aircraft arrives in 2008.

The expansion will allow Hong Kong's No2 airline to launch a cargo service to Los Angeles.

Dragonair is awaiting delivery this year of three Airbus 330 aircraft to take advantage of an expected decision by Beijing allowing Hong Kong carriers to stop over at mainland cities on international routes.

"All in all, China's [air rights policy] will be more and more open to Hong Kong - it's just a matter of time," Dragonair chief executive Stanley Hui Hon-chung said.

Mr Hui said China's strong economic growth would enable the expected 10 per rise in passenger numbers and cargo volumes.

The airline carried more than five million passengers and 385,000 tonnes of cargo last year, an increase of 10 per cent and 12.5 per cent, respectively, over the previous year.

Dragonair plans to increase its mainland destinations to 23 cities, adding Shenyang to its routes at the end of the month.

Russian rights to boost HK flights
Overflight deal opens door to more US, Europe services as Russian freight rises
14 March 2006
South China Morning Post

Hong Kong and Russian negotiators have agreed to a big expansion of passenger and cargo services in their latest bilateral talks but no progress was made on Cathay Pacific Airways' troubled bid to launch services to Manchester through Moscow.

Aside from more direct flights, Cathay, Hong Kong Dragon Airlines and Oasis Hong Kong Airlines will benefit from more Russian overflight rights, allowing them to fly to more destinations in Europe and the United States without routing restrictions.

A government official would not disclose the size of the expansion but with carriers on both sides not fully using previous allocations for point-to-point flights, the deal will be judged by greater access to Russian airspace.

"It has expanded many, many times, much more than either side is utilising at present," said an official who attended the talks.

According to one Hong Kong airline executive, local carriers were close to the full allocation of Russian overflight rights and the pending shortfall was "always hanging over our expansion plans".

"The increase in overflights should look after the needs of all of us for the foreseeable future," the executive said.

The shortest routes to Europe are over Russia and the most fuel-efficient routings to the US go via the Russian Far East.

Oasis is understood to have requested 10 overflight rights a week, enough to start flights this summer to London; Dragonair is committed to new cargo services to Los Angeles; and Cathay is expected to expand its portfolio of destinations as its fleet reaches 101 aircraft by its 60th birthday in September.

Demand for Cathay's services remained robust last month with passenger traffic up 9.1 per cent at 1.26 million. However, Cathay will be disappointed by a lack of progress on its Moscow-Manchester bid, which remains stuck in regulatory mire. It has twice delayed launching the route; last month its code-sharing partnership with Aeroflot was found lacking the necessary rights to fly beyond Moscow to Britain's third-largest city.

The airlines gave negotiators very different wish lists for the talks which ended last week. Hong Kong carriers made no cargo requests, while Russian carriers were largely focused on freight.

In return for the overflight rights, Russian airlines were awarded 12 extra cargo flights a week to Hong Kong, including coveted beyond-rights to Japan and India.

http://www.airports.org/cda/aci/display/main/aci_content.jsp?zn=aci&cp=1-5-54-190_9_2__
I think hk will take the title of the world's busiest cargo airport in 2006 if you look at the trend.

China to fully open skies to Hong Kong carriers - report
14 March 2006
Xinhua Financial Network (XFN) News

HONG KONG (XFN-ASIA) - China will fully open its skies to Hong Kong airlines, and Cathay Pacific's long-held dream of access to Shanghai will come true this year, a press report said.

Yang Yuanyuan, director of the General Administration of Civil Aviation, said China will allow Hong Kong carriers to expand their traffic rights in the mainland from the current 45 cities.

In return, Hong Kong should open up its air routes to Chinese carriers, he told Hong Kong-based Wen Wei Po in an interview.

Yang also said China will allow Hong Kong carriers to load cargo at mainland airports and then fly to destinations in a third country, significantly reducing their costs.

He said air traffic growth in Hong Kong has slowed in recent years as the passengers flying to the mainland via Hong Kong declined due to the growth of direct international fights to China.

Yang added that Hong Kong flag carrier Cathay Pacific, which for years has been applying to fly its passengers flights to China's business hub Shanghai, will be approved to fly that route this year.

Hong Kong Express Airways Launches Online Reservations
Corporate Press Release
Hong Kong, March 14th 2006

Hong Kong Express Airways – Hong Kong’s first executive airline, has introduced a new online booking service. Offering round the clock convenience, the new facility allows travellers to reserve their flights to any Hong Kong Express Airways destination by simply logging on to www.hongkongexpress.com.

The latest in a series of enhancements to both the Hong Kong Express website’s functionality and ultimately the airline’s overall customer experience, the new online reservation tool streamlines the booking process by guiding users through a series of quick and simple steps.

Having selected their destination and preferred date of travel, users are advised of availability and fare, which once agreed to then permits choice of flight time as well as meal and seat preference. Once all flight and passenger details are entered, the booking is finalised through a secure credit card payment process, which after final confirmation presents the user with a full printable itinerary of their travel arrangements.

Commenting on this latest development, Hong Kong Express General Manager Sales, Simon Sin said, “The launch of our online reservation system is a tremendous step forward for Hong Kong Express. As a compliment to our existing traditional booking channels and to our online fare and flight search functions, the addition of online booking reflects our commitment to offer travellers an altogether more stress free and comfortable experience - starting from before they even step on our aircraft.

Global business travellers operate 24 hours a day across multiple time zones so meeting the need for immediate, direct and easy access to reservations through an online booking engine is a must for any airline wanting true international reach.” He added.

To celebrate the launch, Hong Kong Express Airways is offering special internet-based fares on all routes including the airline’s Nanjing service, scheduled to commence on 31st March.

CR Airways secures order for 40 Boeings
16 March 2006
South China Morning Post

Hong Kong carrier CR Airways has made the deadline to secure its order for more than 40 Boeing aircraft in a move that indicates the government will soon approve a new ownership structure for the ambitious young airline.

CR management made its first deposit last week on the aircraft - 30 B737-800s and 10 B787 Dreamliners - valued at US$3.48 billion according to the average list prices posted on Boeing's website.

Industry standard is for airlines to pay 0.001 per cent of the agreed total price of the order, but CR Airways is understood to have negotiated a lower initial deposit.

"The deposit was paid and they negotiated it down to about 35 per cent of the original amount," a source close to the process said yesterday.

"Boeing's training courses for the engineers, etcetera started [yesterday]."

Discounts of at least 30 per cent of the listed price are common for big aircraft deals.

The state-owned HNA Group, owners of Hainan Airlines, and its chairman Chen Feng in November said they would take a majority stake in CR Airways, a move that raised concerns about whether the restructured entity would meet the ownership and business criteria to be a Hong Kong-designated carrier.

But it is understood the proposal was substantially revised this month to make it easier for the government to accept the new partnership as a local carrier.

The revamped proposal is believed to include a role for Hong Kong-listed Yu Ming Investments, which in 2003 bought $140 million in CR Airways convertible bonds redeemable in 2009.

Maintaining its status as a Hong Kong-registered airline would allow CR Airways to continue to take advantage of bilateral aviation deals struck by Hong Kong, including a substantial expansion of Russian overflight rights for the city's carriers.

港联航空公司计划开辟香港—台中定期航线
2006-03-14
台湾《中华日报》
记者诸葛志一、徐义雄／台中 　2006/03/14(16:50:22)

香港港联航空公司有意在台中清泉岗机场开辟定期航线。昨（13）日下午港联航空公司总裁谢天赐与台湾“立法委员”谢明源、台中市商业团体分别拜会台中市县政府，寻求支持；台中市市长胡志强与副县长张壮熙均表示，不但乐观其成，还会全力配合支持，以促进大台中的繁荣。

港联航空公司去年九月间因包机航线曾飞到清泉岗机场一次，对清泉岗机场留下良好的印象，同时有感台湾中部地区台商约有七、八万人，而中科园区以及机械园区成立之后，如果清泉岗机场开辟直飞香港地区航线，客源无限，因此有意以对等航权、每天当日来回方式，与华信航空公司合作在清泉岗机场开辟定期航线。
　　
胡志强、张副县长表示，清泉岗机场有定期地区航线后，将大大降低中部厂商的成本，台商不必再绕远路，可以就近在台中搭机，而除了港联航空公司在清泉岗机场开辟定期航线，对大台中居民来说是一大利多外，就连彰化也关切，希望能透过清泉岗的地区航线，将彰化的花卉外销到日本，以缩短运输时间。

胡志强、张副县长强调清泉岗机场优点多，又靠近国道高速公路，交通运输相当方便，发展成为国际机场的潜力无穷，配合台中港未来的发展，因此对于港联航空公司有意在清泉岗机场开辟定期航线，市府不但乐观其成，也会全力配合支持，以促进大台中的繁荣。

CR Airways secures order for 40 Boeings
16 March 2006
South China Morning Post

Hong Kong carrier CR Airways has made the deadline to secure its order for more than 40 Boeing aircraft in a move that indicates the government will soon approve a new ownership structure for the ambitious young airline.

CR management made its first deposit last week on the aircraft - 30 B737-800s and 10 B787 Dreamliners - valued at US$3.48 billion according to the average list prices posted on Boeing's website.

Industry standard is for airlines to pay 0.001 per cent of the agreed total price of the order, but CR Airways is understood to have negotiated a lower initial deposit.

"The deposit was paid and they negotiated it down to about 35 per cent of the original amount," a source close to the process said yesterday.

"Boeing's training courses for the engineers, etcetera started [yesterday]."

Discounts of at least 30 per cent of the listed price are common for big aircraft deals.

The state-owned HNA Group, owners of Hainan Airlines, and its chairman Chen Feng in November said they would take a majority stake in CR Airways, a move that raised concerns about whether the restructured entity would meet the ownership and business criteria to be a Hong Kong-designated carrier.

But it is understood the proposal was substantially revised this month to make it easier for the government to accept the new partnership as a local carrier.

The revamped proposal is believed to include a role for Hong Kong-listed Yu Ming Investments, which in 2003 bought $140 million in CR Airways convertible bonds redeemable in 2009.

Maintaining its status as a Hong Kong-registered airline would allow CR Airways to continue to take advantage of bilateral aviation deals struck by Hong Kong, including a substantial expansion of Russian overflight rights for the city's carriers.
the news must be new. I don't see that in boeing website yet.

Oasis Hong Kong Airlines acquires two 747-400s 16 March 2006 Hong Kong Oasis Hong Kong Airlines is very pleased to announce the acquisition of its first two aircraft. The aircraft are B747-400 previously operated and maintained by SingaporeAirlines and SIA Engineering Co. Ltd. respectively.

Mr. Stephen Miller, CEO, commented: "Demand for these two aircraft from leading full service carriers has been very strong. So we are absolutely delighted to have secured them as they are in excellent condition and perfect for our exclusive new long haul, non-stop services priced for the budget conscious traveller.

Mr. Robert Laird, Vice President of China Sales for The Boeing Company, congratulatedOasis on its choice of aircraft, commenting: "The 747-400 is an excellent aircraft for Oasis; it provides outstanding service and is used by most of the world's major airlines, has an excellent safety record and a new future ahead of it in the form of the 747-8".

The purchase of these two aircraft by Oasis is the first step in an expansion programme which includes acquisition of new aircraft. The aircraft will be delivered in July this year and after customising for Oasis' unique service, will enter service later this year, initially between Hong Kong and London, Gatwick. The exact date will be announced in May 2006.

For further information, please contact Mr. Stephen Miller at +852 2523 3333.

China to fully open skies to Hong Kong carriers - report
14 March 2006
Xinhua Financial Network (XFN) News

HONG KONG (XFN-ASIA) - China will fully open its skies to Hong Kong airlines, and Cathay Pacific's long-held dream of access to Shanghai will come true this year, a press report said.

Yang Yuanyuan, director of the General Administration of Civil Aviation, said China will allow Hong Kong carriers to expand their traffic rights in the mainland from the current 45 cities.

In return, Hong Kong should open up its air routes to Chinese carriers, he told Hong Kong-based Wen Wei Po in an interview.

Yang also said China will allow Hong Kong carriers to load cargo at mainland airports and then fly to destinations in a third country, significantly reducing their costs.

He said air traffic growth in Hong Kong has slowed in recent years as the passengers flying to the mainland via Hong Kong declined due to the growth of direct international fights to China.

Yang added that Hong Kong flag carrier Cathay Pacific, which for years has been applying to fly its passengers flights to China's business hub Shanghai, will be approved to fly that route this year.Bravo!! :applause: :applause: :applause:

This will give Oneworld a proper Chinese partner - not just a SE Asian partner. :)

Oasis Hong Kong Airlines acquires two 747-400s 16 March 2006 Hong Kong Oasis Hong Kong Airlines is very pleased to announce the acquisition of its first two aircraft. The aircraft are B747-400 previously operated and maintained by SingaporeAirlines and SIA Engineering Co. Ltd. respectively.

Mr. Stephen Miller, CEO, commented: "Demand for these two aircraft from leading full service carriers has been very strong. So we are absolutely delighted to have secured them as they are in excellent condition and perfect for our exclusive new long haul, non-stop services priced for the budget conscious traveller.

Mr. Robert Laird, Vice President of China Sales for The Boeing Company, congratulatedOasis on its choice of aircraft, commenting: "The 747-400 is an excellent aircraft for Oasis; it provides outstanding service and is used by most of the world's major airlines, has an excellent safety record and a new future ahead of it in the form of the 747-8".

The purchase of these two aircraft by Oasis is the first step in an expansion programme which includes acquisition of new aircraft. The aircraft will be delivered in July this year and after customising for Oasis' unique service, will enter service later this year, initially between Hong Kong and London, Gatwick. The exact date will be announced in May 2006.

For further information, please contact Mr. Stephen Miller at +852 2523 3333.More great news from Honkers!! :) :okay:

Cheap flyer Oasis takes first aircraft on board
Airline picks Boeing in US$100m deal after long route talks affect plan to lease
17 March 2006
South China Morning Post

Oasis Hong Kong Airlines agreed a US$100 million deal to secure its first two aircraft yesterday, bringing the low-cost carrier closer to its inaugural flight to London in the second half of the year.

Hong Hong's newest airline, controlled by property magnate Raymond Lee Cho-min, bought two Boeing 747-400 aircraft from Deucalion Capital, an aviation fund set up by finance house DVB Bank of Germany.

"Demand for these two aircraft from leading full-service carriers has been very strong, so we are absolutely delighted to have secured them," chief executive Stephen Miller said yesterday. "They are in excellent condition and perfect for our exclusive new long haul, non-stop services priced for the budget-conscious traveller."

The 17-year-old aircraft, sold by Singapore Airlines to DVB three years ago and now in service with Spain's Iberia, are to be delivered in July after the European carrier's two-year wet lease expires.

Oasis had been hopeful of flying in June. However, a lengthy battle to secure route rights, during which the management had to defend its application against the objections of other airlines, will delay the launch by several months.

It had also planned to lease the aircraft. But demand for long-haul models such as the B747 grew while the company was in the process of answering the objections, leading Oasis to buy the aircraft.

While management says capital has not been an issue, leasing the first few aircraft would have given it a proven business model to take to the banks, perhaps allowing Oasis to negotiate better terms for any purchase.

Oasis said the aircraft were "the first step in an expansion programme which includes acquisition of new aircraft".

A sales team from Airbus was understood to have pitched several long-haul models to Oasis this week, with the A340-600 being the most attractive due to early possible delivery dates and discounted prices.

After delivery in July, the B747s will undergo a rigorous 40-day maintenance overhaul and a custom cabin rebuild before flying.

A launch in time for the end of summer peak season looked doubtful, one analyst said.

Oasis is still waiting for the Civil Aviation Department to approve its air operator's certificate but has the route rights to fly to Stansted Airport in London, Milan, Cologne, Chicago and Oakland.

Management has suggested ticket prices will undercut other carriers' by 25 to 30 per cent.

The new aircraft are expected to be the first of many.

"Our business model identified 60 possible points we could fly to in the next 10 years," commercial director Ken Chad said. "So, we will need a fleet to satisfy that."

@hkskyline
Am I to understand that Hong Kong carriers will be allowed full access to the China market but that Cathay will be limited merely to opening Shanghai or will Cathay be free to open as many routes as it wants in China?

@hkskyline
Am I to understand that Hong Kong carriers will be allowed full access to the China market but that Cathay will be limited merely to opening Shanghai or will Cathay be free to open as many routes as it wants in China?
If the plan reported by Wen Wei Po is real, then Cathay will be able to fly to multiple Chinese cities and have fifth freedom rights to go beyond. In fact, any Hong Kong carrier will benefit, not just Cathay. However, there aren't too many details about the plan, so we'll all have to wait and see how this develops.

^ Thanks. I really hope Cathay gets the "freedom of China" and not just one extra route to Shanghai. :)

If that happens then I wonder how Cathay's relationship with Dragonair will evolve? Will they merge or compete? Will Dragonair go long-haul as Cathay builds up a rival route network in China? Whatever happens the future looks exciting. Hong Kong aviation will no longer be held back by China.... :)

i just realized there is a website for Oasis already.
http://www.oasis-air.com/en/index.asp

Hong Kong's startup airline Oasis buys two used Boeing jets, will start flying in Sept.
17 March 2006

HONG KONG (AP) - Startup discount carrier Oasis Hong Kong Airlines said Friday it has acquired two used Boeing planes in a US$100 million (€82.9 million) deal that will finally see the airline take to the skies after a year's delay.

The long-haul carrier plans to start nonstop flights between Hong Kong and London's Gatwick Airport by the end of September, chief executive Stephen Miller said.

The airline had earlier planned to launch late last year.

Miller said Oasis bought the two Boeing 747-400 airplanes from Deucalion Capital, a unit of Germany's DVB Bank AG for a total of US$100 million.

The planes entered service in 1989 with Singapore Airlines Ltd., and have a list price of about US$220 million (€182.29 million) each if purchased new, according to Boeing's Web site.

"Demand for these two aircraft from leading full service carriers has been very strong," Miller said. "So we are absolutely delighted to have secured them as they are in excellent condition and perfect for our new long haul services."

Oasis said the aircraft, due to be delivered in July, will undergo heavy maintenance and be fitted with new cabins before entering service in September.

After launching services to London, the airline will start flights to other European destinations such as Milan, Berlin and Cologne, Miller said, adding that he hoped to increase Oasis' fleet to five Boeing 747 aircraft by 2007.

Hong Kong's Air Transport Licensing Authority has also granted Oasis rights to fly from Hong Kong to Oakland, California, and Chicago.

Oasis was founded by entrepreneur Raymond Lee and his wife. Other investors include Allan Wong, chairman of local electronics firm VTech Holdings Ltd.

The airline had signed an agreement last year to lease two ex-United Airlines Boeing 747-400 aircraft and planned to begin flights by the end of 2005. But its application for route licensing was delayed after several local airlines filed objections.

A December ruling by the licensing authority went in favor of Oasis, allowing it to move ahead with plans.

Cargolux Adds Third Frequency From Asia To Spain
Corporate Press Release

Luxembourg, 15 March, 2006 - Based on strong clients demand in Hong Kong and Barcelona, for both, exports from Asia as well as imports and exports from Spain, Cargolux Airlines International S.A. announces the addition of a third frequency from Asia directly to Spain, starting on 30 March 2006.

CV 7934 departs Hong Kong on Thursdays at 21.05h, arriving in Barcelona on Friday mornings at 07.00h. Departure from Barcelona is at 08.30h , with arrival in Luxembourg at 10.25h.

The two existing flights, CV7333 and CV7336, operational since June 2004, are operated out of Hong Kong on Wednesdays, with departure at 06.50h, arriving in Barcelona at 16.10h, and on Saturdays, departing Hong Kong at 19.25h , with arrival in Barcelona on Sunday mornings at 04.55h. From Luxembourg, the services feed into Cargolux's worldwide network, offering over 50 scheduled flights, plus additional interline possibilities.

Shipments include hi-tech items, telecommunication equipment, consumer goods and garments for both, the Spanish market and Cargolux's additional flight destinations. From Spain, the company’s modern B747-400 freighters carry additional perishables, fashion and leather goods, as well as industrial cargo shipments that are fed into Cargolux's worldwide route network.

CAD to hold exhibition of civil aviation development in Hong Kong
Friday, March 17, 2006
Government Press Release

In commemoration of the 60th Anniversary of the Civil Aviation Department, the exhibition, "Development of Civil Aviation in Hong Kong", will be staged from March 23 to 28 at the Hong Kong Central Library.

Organised by the Civil Aviation Department (CAD), the exhibition traces the development of civil aviation in Hong Kong over the past six decades, focusing on airports, aircraft and the department, which was established in 1946.

The exhibition, which will include a collection of precious photographs and display of air traffic control equipment, will enable the public to enrich their knowledge of local civil aviation development and allow aviation enthusiasts to reminisce about the good old days.

A spokesman for the CAD said the six-day exhibition would also highlight the achievements of the department over the past 60 years. Through the exhibition, the department hopes to give the public a better understanding of its work, major developments and commitment to a safe and efficient air transport system.

The exhibition will be open from 10am to 8pm at Exhibition Gallery 5. Members of the public are welcome to visit the exhibition. Admission is free.

In connection with the exhibition, six lectures will be given on the theme "Professional Career Opportunities in Civil Aviation". Speakers will include representatives from the CAD, Cathay Pacific Airways and the Hong Kong Aircraft Engineering Company Limited. The lectures will be held at the Lecture Theatre of the Hong Kong Central Library on March 23, March 27 and March 28. Free admission tickets will be distributed starting March 23 at the reception counter at Exhibition Gallery 5. Each person is entitled to collect two tickets only on a first-come, first-served basis while tickets last.

Details of the six lectures are as follows:

Date: March 23 (Thursday)
Time: 6.30pm - 7.45pm
Language: Cantonese

Date: March 23 (Thursday)
Time: 8.15pm - 9.30pm
Language: Cantonese

Date: March 27 (Monday)
Time: 1.45pm - 3pm
Language: Cantonese

Date: March 27 (Monday)
Time: 3.30pm - 4.45pm
Language: Cantonese

Date: March 28 (Tuesday)
Time: 1.45pm - 3pm
Language: Cantonese

Date: March 28 (Tuesday)
Time: 3.30pm - 4.45pm
Language: English

Hong Kong's Dragon Airlines says February's passenger traffic rose 4.7 percent on year
20 March 2006

HONG KONG (AP) - Dragon Airlines Ltd., Hong Kong's second-biggest carrier, said Monday its passenger traffic in February rose 4.7 percent from last year, but the firm warned that high fuel prices would put pressure on the company.

The airline, also known as Dragonair, said it carried 392,005 passengers in February, up from 374,550 one year ago.

Its cargo volume in February rose 14.1 percent to 24,678 metric tons (27,145 short tons) from 21,624 metric tons (23,786 short tons) in the same month in 2005.

"While the numbers are good, the fact is that the bottom line remains under pressure primarily due to the high oil price," Dragonair CEO Stanley Hui said in a statement.

"So even with good passenger traffic growth this year, it will be another challenging 12 months," Hui added.

For full-year 2005, Dragonair carried a record 5.03 million passengers, up 9.9 percent from the previous record of 4.58 million in 2004.

From Hong Kong, Dragonair flies to more than 30 destinations across the Asia-Pacific region, while its cargo network connects Europe, the Middle East, Japan, Taiwan and China.

The unlisted company's major shareholders are China National Aviation Co., which holds a 43.3 percent stake; CITIC Pacific Ltd., with 29.4 percent; Cathay Pacific Airways Ltd., with 17.8 percent; and Swire Pacific Ltd., which holds 7.7 percent.

Dragonair Plans to Open Second Stopover Flight in Mainland

HONG KONG, March 17, SinoCast -- Hong Kong Dragon Airlines Limited (Dragonair), a growing air carrier in Asia, announces that it is considering opening its second stopover flight to a city in mainland, besides Dalian, Liaoning Province.

Dragonair is the first HK-registered airline company that exercises the stopover aviation traffic rights in mainland. According to an airline arrangement agreement, the mainland aviation administrators allow the HK-based company's plane to fly to a mainland city via another city as midway station, in which the plane just is allowed to drop passengers, but no to pick up passengers. When the plane flies back, it can pick up passenger in the stopover station but cannot drop passengers.

Titus Diu, general manager for HK and Southern China of Dragonair, reveals that Zhengzhou, capital of Henan Province, is likely be the second stopover city. From this April, the company will sharply add the flights to Xi'an, Sanya and Chengdu to catch more shares in tourism and business trip market.

Airlines set to gain fifth-freedom rights
Alman Loong
21 March 2006
Hong Kong Standard

Hong Kong airlines will gain the right this year to pick up passengers and cargo in the mainland on their way to third- country destinations, according to Xu Jialu, a vice chairman of the Standing Committee of the National People's Congress.

Xu said these so-called fifth-freedom rights will feature in the next round of Hong Kong-mainland air services negotiations expected to take place this year.

Currently, Hong Kong-based carriers can offer point-to-point passenger and cargo services between Hong Kong and 45 mainland cities, but once they have landed in China, they are not allowed to go on to another international destination.

Albert Yau, general manager for cargo at Hong Kong Dragon Airlines, said fifth-freedom rights could conflict with the Basic Law, Hong Kong's mini- constitution, which enshrines the principle of ``one country, two systems.''

If the mainland were to allow Hong Kong carriers to pick up passengers or cargo in Shanghai for transport to the United States, for example, the US government would have to talk with both the Hong Kong and central governments; otherwise it would violate the one-county, two-systems principle, he said. Yau added fifth-freedom rights might also damage Hong Kong economically, since passengers and cargo would no longer need to stop in Hong Kong before going on to the mainland. However, Hong Kong's former director of civil aviation, Peter Lok, said the Basic Law is not in danger of being violated.

According to Basic Law Article 132, he said, all agreements providing for air services between Hong Kong and other states and regions involving stops in the mainland must be concluded by the central government.

Aviation fanatics cleared for takeoff at Central Library
23 March 2006
South China Morning Post

Civil aviation official and amateur pilot Alva Fung Chi-wing realised a dream when he flew a jumbo jet out of Chek Lap Kok yesterday - without leaving the ground.

The Boeing 747 lifted off the runway as he pulled back on the controls of a flight simulator that will be one of the attractions at an exhibition marking the 60th anniversary of the Hong Kong Civil Aviation Department.

The public will get a chance to fly the same simulator at the exhibition - Development of Civil Aviation in Hong Kong - which is being staged in Exhibition Gallery Five at the Central Library from today until Tuesday.

"The simulator is different from the flight games in the shops," said Mr Fung, the department's senior operations officer, after his adventure at the library. "People, especially children and students, will enjoy manipulating it."

He said the exhibition aimed to increase public awareness and interest in the aviation industry, and for the public to gain an understanding of the department, which had been monitoring aircraft safety since 1946.

The exhibition also features a model of the air traffic control centre at Chek Lap Kok, and collections of photographs highlighting the history of aircraft and airports and the development of the department in Hong Kong.

One of the photographs is of the first powered flight in Hong Kong, taking off from a tidal flat at Sha Tin on March 18, 1911. A replica of the Farman biplane used on that historic day now hangs from the ceiling at Chek Lap Kok airport.

The exhibition also includes lectures on careers in aviation by representatives of the department, Cathay Pacific and the Hong Kong Aircraft Engineering Company.

Hong Kong gains more Europe flights
Deals give rights for services to France, Germany and Russia
24 March 2006
South China Morning Post

The government unveiled a substantial expansion of aviation rights with some of Hong Kong's biggest trade and tourism partners in continental Europe yesterday, striking new deals with France, Germany and Russia.

Negotiators from the Economic Development and Labour Bureau and their French counterparts this month agreed to allow airlines on either side to mount 20 flights a week between the countries, an increase of 54 per cent over the previous agreement.

Wilson Fung Wing-yip, deputy secretary for economic development and labour, said the new bilateral agreement was a substantial advance on its predecessor if viewed against deals struck with the French in the 1990s, when increments averaged one new weekly flight a year for each side.

"This deal secures many more flights than we need for the time being," Mr Fung said yesterday.

Fourteen of the frequencies are designated for passenger services, while six are for cargo.

As reported by the South China Morning Post last week, Hong Kong's negotiators also forged a deal with the Russian authorities this month, almost doubling the number of point-to-point services for both countries' carriers and securing a substantial increase in vital overflight rights.

Airlines flying either flag can now offer up to 34 weekly flights between Hong Kong and cities in Russia, up from 18 flights. But, with travel demand still in its infancy between the countries, the Russian overflight rights were the key from Hong Kong's perspective.

Foreign carriers require rights to fly through Russian airspace, which offers the shortest routes to both Europe and the United States from Hong Kong.

Mr Fung also revealed the details of deals struck last year with Germany, Hong Kong's biggest trading partner by value and volume.

Two deals struck in June and November last year increased the number of weekly flights between the countries by six to 31, 14 of which are reserved for cargo operators.

Cathay, which flies to Frankfurt direct and serves other German cities through a code-share arrangement with British Airways, is the only local carrier offering passenger services to Germany at present.

Hong Kong Oasis Airlines, which should get off the ground in the fourth quarter, is committed to fly first to London's Gatwick airport, but it also has rights to Cologne, Milan, Chicago and Oakland in the United States.

HK CNAC 2005 Net Profit Falls 38% To HK$225.0 Million
24 March 2006

HONG KONG (Dow Jones)--China National Aviation Co. (1110.HK), the largest shareholder of Hong Kong Dragon Airlines Ltd., said Friday its 2005 net profit fell 38% from a year earlier.

Net profit for the year totaled HK$225.0 million, down from HK$361.0 million in 2004. Revenue rose to HK$2.35 billion from HK$1.87 billion.

The company recommended a final dividend of 1 HK cent, unchanged from the previous year.

CNAC is 69% held by Air China, which in turn is controlled by state-owned China National Aviation Holding Co. The listed company owns 43.3% of Hong Kong's second-biggest airline by capacity, Dragonair.

The company didn't elaborate on the results in its statement filed to the Hong Kong stock exchange, but it plans to issue a news release late Friday.

Taste of the high life for youngsters
One-day adventure aims to inspire budding pilots to gain their wings and fly
25 March 2006
South China Morning Post

Imaginations were soaring at the Hong Kong Aviation Centre as junior pilots lapped up their first chance to get behind the controls at the old Kai Tak airport.

Budding aviators between the ages of two and six took part in a one-day course aimed at inspiring them to become future airline pilots. "Flying is amazing," said Isaac Tsang Lok-hei, four. "When I grow up, I'm going to be a pilot. I want to fly to Canada."

But they still have some way to go before they can pin their wings on their sleeves. Feet remained firmly planted on the ground throughout the day - they were at the controls of a training simulator.

"It's just like playing a video game," said Raphael Tang Tze-kiu, four.

Emile Niu Ming-wai, a volunteer flight instructor, said it would be too much to expect the children to grasp the theory of flight but that they were perfectly capable of getting to grips with the mechanics of controlling a plane's movement.

Six-year-old Kadin Wong looked like an old hand as he piloted his virtual aircraft over Lantau Island. He did, however, have something of a head start over his classmates. His father, actor Michael Wong Man-tak, holds a commercial helicopter pilot's licence.

"I have taken him up in the helicopter, and when he is a little older, I'll probably give him a shot of the stick himself," Wong said.

Through Operation Flying Eagle, a charity launched earlier this month, Wong aims to take 700 flight-crazy children on pleasure flights this year. "I'm keeping these kids' dreams alive," Wong said. "If one or two of these children make it all the way to becoming a pilot, then that's a good thing."

But the lack of a dedicated training school meant it was difficult for children with their heads in the clouds to make that a reality. Wong called on the government to collaborate with local airlines and mainland authorities to establish a training centre at Shek Kong Airfield near Yuen Long.

"We have some of the best aviators and some of the leading airline companies in the world," he said. "Why can't we build an aviation training centre?"

Discover Hong Kong With Qatar Airways
Award-Winning Airline Prepares For First Route Launch Of 2006
Daily Non-Stop Flights From Doha To Hong Kong Begin On March 26
14 March 2006
Qatar Airways Corporate Press Release

Doha, QATAR – Qatar Airways is gearing up for its first route launch of 2006 with the vibrant and colourful destination of Hong Kong joining the airline’s growing network on March 26.

Daily scheduled flights will operate non-stop from Doha, capital of the State of Qatar, to Hong Kong – the airline’s third gateway in Greater China.

Qatar Airways already serves the Chinese capital Beijing and commercial centre of Shanghai with four flights a week to each city non-stop from Doha.

Hong Kong becomes Qatar Airways’ 12th Far East destination in a route network that already covers Osaka, Shanghai, Beijing, Seoul, Manila, Cebu, Singapore, Kuala Lumpur, Bangkok, Yangon and Jakarta.

The new Hong Kong service will be operated with the state-of-the-art Airbus A330 widebody aircraft, configured in two classes. Business Class features up to 24 seats reclining 160 degrees in a 2-2-2 configuration, while the Economy cabin has up to 259 seats.

Qatar Airways is celebrating its newest route launch by taking its award-winning services to a destination that has been designated by tourism authorities – 2006 Discover Hong Kong Year. And the route is exceptionally important as it comes in a year when Qatar hosts the 15th Asian Games. Qatar Airways is the Official Airline of the Games, which take place over a two-week period in December.

To mark the launch, Qatar Airways Holidays – a division of Qatar Airways – is offering special introductory packages to Hong Kong with prices starting from QAR3,095 per person sharing a double room. The price includes round-trip travel in Economy Class on Qatar Airways from Doha, three nights’ accommodation at the Hotel Metro Park, round-trip airport transfers, Hong Kong island city tour and free entry to Hong Kong Disneyland.

At the forefront of 2006 Discover Hong Kong Year are Hong Kong’s most ambitious and exciting new attractions to date. The recently-opened Hong Kong Disneyland on Lantau Island brings the Magic Kingdom to Hong Kong with an Asian twist.

Also on Lantau is the new 5.7km Ngong Ping 360 Skyrail cable car offering spectacular panoramic views during a 25-minute journey from Tung Chung to Ngong Ping, home of the popular Big Buddha. And Hong Kong’s Wetland Park is another attraction having opened a new state-of-the-art visitor centre.

With breathtaking views from the highly-popular Victoria Peak, Hong Kong also offers excellent shopping, dining and entertainment for visitors.

The flying experience on Qatar Airways’ A330-200 promises to be one to remember.

The aircraft features the airline’s award-winning Audio Video On Demand interactive entertainment system, allowing passengers in all classes to choose from more than 40 international movies, as well as short programmes to view on their individual TV screens. Passengers can also listen to an extensive list of 250 CDs and 16 audio channels. In addition, there is a choice of 12 video games to play through the interactive TV screens.

Qatar Airways Chief Executive Officer Akbar Al Baker said Hong Kong was one of the most exciting cities in the world offering visitors the opportunity to sample its unique heritage, festivals and tourist attractions.

“In just under two weeks’ time, Qatar Airways will be adding the vibrant city of Hong Kong to our global network,” he said.

“Hong Kong is a key financial, business and leisure centre which is a must for any airline to serve – and Qatar Airways is no exception.

“We are extremely delighted to launch this exciting route in a year when Hong Kong is pushing the boat out to promote its new and diverse attractions.

“Hong Kong is spending a lot of money and resource during 2006 and we are only too pleased to be able to launch our flights to this wonderful destination during Discover Hong Kong Year. Hong Kong fits nicely into our growth strategy to serve key capital and secondary cities around the world.”

Added Al Baker: “Hong Kong has a fantastic tourist product and some of the world’s best conference and convention facilities. By working closely with our partners in Hong Kong, Qatar Airways promises to make this route one of the most successful in recent years.”

More than 23 million people visited Hong Kong during 2005. The Middle East is one of the key markets for inbound tourism to Hong Kong, with visitor figures from the region rising more than 7 per cent in January alone.

For further information on 2006 Discover Hong Kong Year, log onto www.discoverhongkong.com

LCQ3:Improve the air routes and flight procedures
Wednesday, March 22, 2006
Government Press Release

Following is the question by the Hon James Tien and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (March 22):

Question:

People in the aviation industry have pointed out that civil flight paths and airspace are insufficient in the Pearl River Delta Region. In this connection, will the Government inform this Council:

(a) whether it has conducted any studies on this problem; if so, of the results;

(b) of the implications of this problem on Hong Kong's position as an aviation hub in the Asia Pacific Region, the aviation industry and travellers, etc; and

(c) of the measures that have been taken and the plans to be undertaken to address this problem since its emergence?

Reply:

Madam President,

(a) Since the opening of the Hong Kong International Airport in 1998, the Civil Aviation Department (CAD) has been studying ways to improve the air routes and flight procedures for aircraft operating to and from Hong Kong, with a view to optimising the use of the airspace and enhancing the efficiency of aircraft operation. In view of the increasing air traffic in the Pearl River Delta Region (PRD), the PRD Air Traffic Management Implementation Working Group (the tripartite working group) was set up by the civil aviation authorities of the Mainland, Macao and Hong Kong in 2004 to study the issue of airspace management in the PRD. The study indicates that the lack of sufficient air routes and airspace for civil aviation within the PRD is the major cause of the airspace problem. It has been aggravated by the difficulty in optimising air traffic control co-ordination as a result of the high concentration of airports within PRD and the involvement of three different aviation authorities in the management of the airspace.

(b) To Hong Kong, the lack of sufficient air routes and airspace within PRD for civil aviation is causing delays to flights between Hong Kong and the Mainland. This has increased the operating cost of the aviation industry and caused inconvenience to passengers. In the long term, this would affect our ability in further expanding Hong Kong’s aviation network into the Mainland which is crucial to maintaining our aviation hub status.

(c) To resolve the airspace problem, the tripartite working group is in the process of formulating an overall plan for the future airspace management in the PRD at the working level. The study aims to make optimal and effective arrangements for air routes and flight procedures to improve the efficiency of air traffic management in the PRD. The Government is also seeking the support of concerned departments in the Central Government to help resolve the PRD airspace problem.

In parallel, CAD will conduct a comprehensive review on Hong Kong’s air traffic control facilities and identify improvement measures such as upgrading or replacement of the existing air traffic control system; implementation of satellite-based Communications, Navigation, Surveillance and Air Traffic Management System; introduction of more information technology application systems, etc., with a view to meeting the requirements of the future airspace management system.

Pilots demoted for refusing to fly
Dragonair initially sacked men who declined to take delayed jet on day off but got free seats to HK
26 March 2006
South China Morning Post

Two senior Dragonair pilots have been demoted after they refused to take the controls of a delayed flight from Japan because the return leg of the journey fell on their day off.

Dragonair had to fly a replacement cockpit crew from Hong Kong to bring the plane and its passengers back to Chek Lap Kok after a snowstorm forced it to divert from Asahikawa to Tokyo. The pilots and passengers spent the night in Tokyo.

Because the next morning was a rostered day off for both men, the two captains - an Australian and a Canadian - refused to fly the Airbus and instead claimed free seats in business class while their stand-ins piloted the flight.

Their action on February 14 is understood to have further delayed the plane as the emergency arrangements were made for a replacement crew.

Dragonair initially sacked the two pilots, but appeal hearings which ended on Thursday reduced the penalties for the men to loss of rank.

The Australian was demoted from senior to junior captain while the Canadian pilot was demoted from senior pilot to first officer, meaning substantial pay cuts. Both men insisted at their appeals that they were legally entitled to their guaranteed days off.

The incident comes as Dragonair pilots are in a contract compliance dispute over pay and rostering issues, and appears to indicate the depth of feeling among some cockpit crew.

But one Dragonair pilot told the Sunday Morning Post: "These two captains appear to have taken a decision to be particularly bloody-minded. Even in the middle of a dispute you don't just abandon your command when you're down route. They're lucky the passengers made to wait for a new crew to arrive didn't know they were sitting with their feet up in business class on the flight home. They're also lucky to have kept their jobs at all."

But another pilot said many colleagues were "at the end of their tether" over working conditions at Dragonair. "Some are doing five or six takeoffs and landings a day and they are constantly being called to work on days off," he said.

It is understood pilots have refused to fly until they take advice from the Dragonair Pilots' Association, which has told its 300-plus members - 85 per cent of pilots - to work to their contracts.

The association said it had been forced into the work to rule by the company's refusal to address their concerns.

Dragonair initially refused to discuss the February incident or to explain why it allowed the pilots to claim seats in business class. "Staff disciplinary proceedings are an internal matter," the airline said in a statement.

It issued a second statement saying: "Dragonair very much regrets the inconvenience caused to the passengers on this service. Our staff in Japan did all they could to minimise the inconvenience."

Natalie Cooke, general manger of the pilots' association, which represented the pilots at the disciplinary hearings, refused to answer questions about the pilots' actions and whether the association approved of what they had done.

HK PRESS: China, HK To Hold Aviation Talks Mid-April
26 March 2006

HONG KONG (Dow Jones)--China and Hong Kong are expected to hold talks in the middle of April on the possibility of increasing the number of direct flights between the two sides, Chinese-language newspaper The Apple Daily reported Monday.

They are also expected to discuss increasing the two sides' fifth freedom rights, the report said.

The right to carry passengers or cargo to one country and then fly on to another, rather than having to return to the country of origin, is called a fifth freedom right under international aviation agreements.

De-facto Hong Kong flag carrier Cathay Pacific Airways Ltd. (0293.HK) doesn't yet operate passenger flights to Shanghai, but may be a beneficiary if April's talks lead to more flights between Hong Kong and Shanghai.

CITIC ready to cut back airline stakes
Alman Loong
Hong Kong Standard
Tuesday, March 28, 2006

http://www.thestandard.com.hk/newsimage/20060328/cathy.jpghttp://www.thestandard.com.hk/newsimage/20060328/dragon.jpg

Beijing-backed conglomerate CITIC Pacific will reduce its minority stake in Cathay Pacific Airways and Hong Kong Dragon Airlines if a merger between the territory's two main carriers goes ahead, the firm's managing director Henry Fan said Monday, further signaling his support for such a restructuring.

An industry source said CITIC has been trying to play a balancing role between the mainland's China National Aviation Company, which owns a 43.29 percent stake in Dragonair, and Britain's Swire Pacific, the major shareholder in Cathay, as well as a minority stakeholder in Dragonair.

"It is a political issue," said the source close to Air China, parent of CNAC.

He said that, at least in the short term, there are no plans for such a merger, but confirmed that CNAC would like to gain a majority stake in Dragonair.

Last year, media reports claimed Cathay was in talks to take control of Dragonair, and that its parent Swire Pacific would subsume Air China.

In 2004, Cathay snapped up a 9.9 percent stake in Air China, but merger rumors were quickly denied by Air China, Swire and Cathay Pacific.

At that time, an Air China source insisted: "We are seeking further cooperation, not a merger."

In a complicated share structure - caused in part by the mainland's desire to own a portion of the SAR's flag carriers ahead of the handover - CITIC currently owns 28.5 percent of Dragonair, and has a 25.5 percent stake in Cathay.

In turn, Cathay, which is 46.3 percent owned by Swi
re, holds a 22 percent stake in its smaller rival.

Industry analysts said the possible consolidation of the two carriers would create one of the world's largest airlines by market value, and an Asian powerhouse that could feed an international customer base into greater China's most comprehensive route network.

It would also allow the airlines to rationalize their routes, and reduce overheads on sectors such as Hong Kong-Beijing.

Fan's statement clarified his company's intentions laid out last week when it announced its annual results and said it planned to continue pulling out of what it considered to be non-core businesses, including aviation, indicating that the firm could sell its stakes in the two airlines.

Passenger and cargo volume on both airlines is robust, but soaring fuel costs and intense fare competition have dented bottom lines.

An Air China spokeswoman in Beijing said: "As far as I know, there has not been any talk or news from the management about the changes of Dragonair's shareholder structure."

Cathay Pacific chief operating officer Tony Tyler was unavailable for comment.

Dragonair's net profits account for 52 percent of CNAC's total earnings. But Friday it said the carrier recorded a disappointing result in 2005, with net profits for the year down 59 percent to HK$270 million - far below market expectations. This caused CNAC's net profits to drop 38 percent last year to HK$225 million.

In the first day of trading since the announcement, CNAC's shares closed down 2.12 percent at HK$1.85 Monday, from HK$1.89.

Karen Chan, a local aviation analyst for Credit Suisse, believes a consolidation will make economic sense and, in the current environment of industry liberalization and high oil prices, the two airlines may either flourish together or risk stagnation.

INTERVIEW - China seen continuing to drive Dragonair's growth
28 March 2006

BEIJING (AFX) - China will continue to be Dragonair's biggest market, underpinning growth in both passenger and cargo services, said an official with the Hong Kong-based carrier.

Dragonair carried 5.03 mln passengers in 2005, up 9.9 pct from a year earlier, while cargo volume also reached record highs of 385,000 tons, up 12.5 pct, thanks largely to demand from the mainland.

'We are optimistic that our biggest market, the China mainland, will continue to underpin the growth in the two lines of our business,' Dragonair's north China regional manager Ian Kok told XFN-Asia in an interview.

'Economic expansion in the mainland should remain strong in 2006, fuelled by high levels of manufacturing relocation and foreign direct investment,' Kok said.

He did not provide any detailed forecasts.

Kok said that Dragonair will continue to seek opportunities to expand its services in China.

'This year we remain committed to seeking opportunities in the mainland,' he said.

As part of its expansion in China, Dragonair will launch a new service on March 30 to Shenyang, the capital of northeast China's Liaoning province.

Shenyang, which has a population of 7.2 mln people, will become the 23rd city in Dragonair's mainland network when the thrice-weekly flight via Dalian is introduced.

'Shenyang is the major industrial center in China's northeast, and by linking the city with Hong Kong we hope to facilitate mutual development in the areas of business, trade and culture,' Kok said.

The Shenyang route is Dragonair's first new passenger destination since 2004.

Kok declined to say what other routes Dragonair is looking into.

'We have no plans to announce other new destinations at this time,' he said.

But it is likely that more routes will be introduced this year as travel restrictions on mainland residents are eased under the individual travel scheme, which was introduced in 2003 and currently covers 38 mainland cities.

In his first policy address last October, Hong Kong Chief Executive Donald Tsang said the individual travel scheme has helped boost Hong Kong's retail and job markets, with an extra 4.2 mln visitors from China in 2004 and additional tourism revenues of some 6.5 bln hkd.

The scheme may be extended to more cities this year as the General Administration of Civil Aviation of China plans to open the market progressively under the country's 11th Five-Year Plan, which runs to 2010.

Shenyang was one of four mainland cities to be added to the individual travel scheme from Nov 1 last year.

Chengdu, Jinan and Dalian were the other three cities.

Dragonair offers 14 flights per week to Chengdu and two flights per week to Dalian, but there is currently no service to Jinan, in eastern China's Shandong province.

Dragonair's reach has been extended through codeshare agreements with Air China and Cathay Pacific, and some media reports have said that a closer tie-up of the companies is likely.

But all parties involved have denied the reports, and Kok also refused to comment further.

'Our policy is not to comment on speculation,' he said.

Cathay holds a 17.79 pct stake in Dragonair, while its controlling shareholder Swire Pacific Ltd owns 7.71 pct.

China National Aviation Co Ltd is Dragonair's biggest shareholder, with a 43.29 pct stake.

Kok said Dragonair will maintain fuel surcharges on passenger tickets and freight shipments in an effort to cushion the impact of continued high oil prices.

Dragonair won approval from Hong Kong's Civil Aviation Department to increase fuel surcharges from Dec 1 last year to 93 hkd from 91 hkd.

Cathay Pacific and six other Hong Kong carriers also won approval to raise surcharges.

'High oil prices will continue to have an impact on the whole of the aviation industry in 2006,' Kok said.

'This means that surcharges will be maintained on passenger tickets and freight shipments.'

Kok said that other ways Dragonair will mitigate the impact of high oil prices include continuing to lower its cost base, as well as raising yields, but the latter will take time to achieve.

Dragonair, which was founded in 1985, operates a fleet of 28 Airbus passenger aircraft, comprising 12 A330-300s, six A321s and 10 A320s, Kok said, adding that the carrier plans to take delivery of two more Airbus aircraft this year, but did not specify the type of craft.

Dragonair also operates a fleet of four Boeing 747-200/-300 freighters, one wet-leased A300B4 freighter and one wet-leased Boeing 747-400 freighter.

Kok said the airline plans to add five more Boeing 747-400 freighters by the end of 2008.

Cathay, other airlines lower HK fuel surcharges

HONG KONG, March 28 (Reuters) - Cathay Pacific Airways Ltd., Hong Kong's dominant carrier, and other airlines will lower passenger fuel surcharges by up to 3.4 percent with effect from April, the first cut since the costs were imposed last June.

Still, the Civil Aviation Department said also on its Web site (www.cad.gov.hk/english/fuel_surcharge.htm) that by March 27 it had approved applications from 28 airlines to extend fuel surcharges through to April and May.

Of the 28 carriers, 22 had requested a 3.2 percent to 3.4 percent cut in fuel surcharges compared with those charged in February and March.

The airlines must seek government approval regarding fuel surcharges every two months.

Cathay will reduce its surcharge on short-haul flights by 3.2 percent to HK$90 ($11.5) per ticket and by 3.4 percent on long-haul flights to HK$370.

Cathay currently charges its customers an additional HK$93 on short-haul flights and HK$383 on long-haul flights.

Air China Ltd., China Eastern Corp. Ltd., China Southern Airlines Co. Ltd., Hong Kong-based, unlisted Dragonair, Shandong Airlines, Shenzhen Airlines, Dragonair and Xiamen Airlines, will lower their surcharges by 3.2 percent to HK$90 per ticket from April 1.

A further five airlines asked for an extension of their current surcharge, while Finnair requested that fuel surcharges be increased by 20.1 percent and 36.5 percent, respectively, for its flights linking Hong Kong and Bangkok, and Hong Kong and Helsinki.

Fuel accounts for a large share of airlines' costs and record high prices last year have severely crimped earnings.

Investors also worry that higher ticket prices could eventually curb travel demand.

Shares in Cathay Pacific were down 0.72 percent at HK$13.85 in late Tuesday trade, while Hong Kong's benchmark Hang Seng Index <.HSI> had gained 0.13 percent.

Cathay Pacific's shares have slipped 3.5 percent in the past month through Monday's close.

Shares of China Southern, which have fallen 1.1 percent over the past month, fell a further 1.08 percent to HK$2.30 on Tuesday.

Shares of China Eastern, which have fallen about 3 percent over the past month, fell 1.6 percent to HK$1.26 in late trade.

Air China's shares, which have risen 3.5 percent over the past month, were flat at HK$2.90.

HNA tipped to get green light for CR Airways
30 March 2006
South China Morning Post

State-owned HNA Group, which partly owns Hainan Airlines, is expected to get the approval in its protracted bid for CR Airways after the group's chairman agreed to take only 45 per cent of the Hong Kong company, instead of the original 60 per cent, sources said yesterday.

The decision by HNA chairman Chen Feng will effectively keep CR Airways' status as a Hong Kong-designated carrier, appeasing earlier government worries that the deal will put one of the city's airlines in foreign hands.

The local status will also allow CR Airways to continue to take advantage of bilateral aviation deals struck by Hong Kong.

Wilson Fung Wing-yip, deputy secretary of the Economic Development and Labour Bureau, which vets such deals, said his office had yet to approve the new proposal.

But sources said the bureau was satisfied with Mr Chen's offer, as resubmitted by CR Airways' sole shareholder, former chairman Robert Ip, and Peter Fung Yiu-fai, the managing director of Yu Ming Investments, which owns $140 million of the carrier's convertible bonds, redeemable in 2009.

Sources also said that since Mr Feng was not a Hong Kong citizen, he would be setting up a locally registered unit to hold the CR Airways stake. It was not clear how the new shareholdings will be structured.

"What concerned the government most was whether CR Airways will still be controlled and managed from within Hong Kong," one of the sources said.

"After the acquisition has been approved, CR Airways will be able to apply for the right to fly to other primary Asian cities," said an industry veteran. "And it will probably be a threat to some of Hong Kong's existing carriers."

With the financial backing of HNA, CR Airways three months ago agreed to buy 10 B787 Dreamliners and 30 Next Generation 737-800s worth about US$3 billion.

HNA owns about 11.85 per cent of Hainan Airlines.

LCQ13: Flight noise
Wednesday, March 29, 2006
Government Press Release

Following is the question by the Hon Albert Chan and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (March 29):

Question:

In reply to my question at the Council meeting on October 27, 2004, the Government indicated that the Civil Aviation Department had since October 1998 implemented various flight noise mitigating measures to minimise the impact on the communities near the flight path. For example, to avoid aircraft overflying densely populated areas in the early hours, arrangements were made for flights departing Hong Kong between 11pm and 7am to use the southbound route via the West Lamma Channel as far as possible, while flights arriving in Hong Kong between midnight and 7am were directed to land from the waters southwest of the airport. However, according to the data provided by the Government in its reply to my question at the Council meeting on March 2, 2005, the problem of flight noise during the above hours had worsened in the past few years. I have learnt that up till now flight noise during the above hours still often causes nuisance to residents of many housing estates, making it difficult for them to fall asleep. In this connection, will the Government inform this Council:

(a) of the figures on flight noise levels which reached 70 to 74, 75 to 79, and up to or over 80 decibels ("dB") during the above hours, as recorded by various noise monitoring stations in the past year;

(b) of the types of aircraft the flight noise levels of which reached 80 dB or above in the past year and their operating airline companies; and

(c) whether the existing flight noise mitigating measures will be improved to reduce the nuisance caused to residents; if so, of the details?

Reply

Madam President,

(a) At present, there are 16 noise monitoring terminals in Hong Kong. The noise events recorded at these terminals in 2005 are set out at Annex 1.

(b) The types of aircraft with noise events exceeding 80 dB and the operating airlines concerned are set out at Annex 2.

(c) Subject to flight safety and air traffic operation not being affected, the Civil Aviation Department (CAD) has since October 1998 implemented a series of noise mitigating measures to minimise the impact of aircraft noise on the communities near the flight paths. Such measures, apart from those mentioned in the question, include:

(i) to reduce the aircraft noise impact on Tung Chung, Sham Tseng and Ma Wan, all aircraft taking-off towards the northeast are required to follow the noise abatement departure procedures prescribed by the International Civil Aviation Organisation to reach a higher altitude within a shorter distance;

(ii) aircraft approaching from the northeast between 11pm and 7am have to adopt the Continuous Descent Approach when landing to reduce aircraft noise impact on areas such as Sai Kung, Tseung Kwan O and Ma On Shan; and

(iii) with effect from July 2002, CAD has banned all aircraft which has a higher noise level, as defined in Chapter 2 of Volume I, Part II of Annex 16 of the Convention on International Civil Aviation, from landing and taking-off at the airport.

CAD will continue to closely monitor the flight paths of aircraft landing and departing the Hong Kong International Airport and the aircraft noise impact through the Aircraft Noise and Flight Track Monitoring System. It will also continue to closely monitor international aviation technology developments and consider all possible noise mitigating measures.

hkskyline, do you have a link to that Annex?
"(b) The types of aircraft with noise events exceeding 80 dB and the operating airlines concerned are set out at Annex 2."

hkskyline, do you have a link to that Annex?
"(b) The types of aircraft with noise events exceeding 80 dB and the operating airlines concerned are set out at Annex 2."
http://gia.info.gov.hk/general/200603/29/P200603290097_0097_12360.pdf

Hong Kong Express to launch direct flight to Chiang Mai

HONG KONG, April 4, 2006 (AFP) - Hong Kong Express, an executive airline chaired by Macau casino tycoon Stanley Ho, said Tuesday it has received approval to operate direct flights to popular Thailand tourist spot Chiang Mai.

The airline recently received approval to operate charter flights to the Northern Philippines city of Laoag.

"Buoyancy in the leisure travel market has led us to believe that now is the right time to prepare for this expansion," said Simon Sin, general manager for sales.

The Hong Kong-Chiang Mai route is expected to be launched in June following the start of its charter services to Laoag.

The airline currently operates six scheduled flights daily connecting Hong Kong to China's secondary cities of Hangzhou, Ningbo and Nanjing.

Air NZ to encompass the globe
Chris Daniels
6 April 2006
New Zealand Herald

Air New Zealand says it will become the only true round the world airline, when it launches new flights between Hong Kong and London.

The airline has been planning to double its flights into London since the UK Government last year freed up aviation rights between Britain and New Zealand. It now says these flights will begin on October 28 this year, using a re-fitted Boeing 747-400.

Group general manager, international airlines, Ed Sims said demand for travel between the UK and New Zealand had grown significantly since its daily service was launched in 1998, with arrivals increasing an average of 10 per cent a year.

Air NZ already flies to and from Heathrow once a day, via Los Angeles, but it has long wanted more flights, especially during the peak summer tourist season. Its says the new Hong Kong-London route means it offers the world's only "current round-the-world service on one airline".

It will also become the only member of the Star Alliance flying between Hong Kong and London.

Sims said Air NZ flights from London are "90 to 100 per cent full" during peak times.

The arrival of new long-haul Boeing 777 aircraft allows Air NZ to look at flying new routes, including the start of three times a week flights to Shanghai in November this year.

Prospects of doubling flights to London encouraged the airline to keep hold of one of its leased Boeing 747-400s, which will be refitted with new lie-flat premium seats and inflight entertainment systems.

60th Diamond Jubilee Anniversary of CAD
Source : Civil Aviation Department
Click on the pictures for larger versions.

http://www.cad.gov.hk/english/60th_images/airport06_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport06.jpg)
Since 1947, Hong Kong has become centre of aviation as Pan American Airways commenced there around-the-world service through Hong Kong. In 1949, QANTAS Empire Airways began regular Sydney to Hong Kong service through Darwin and Labuan. British Overseas Airways Corporation (BOAC) began a weekly London to Hong Kong service via Rome, Cairo, Basra, Karachi, Calcutta and Bangkok.

http://www.cad.gov.hk/english/60th_images/aircraft04_resize.jpg (http://www.cad.gov.hk/english/60th_images/aircraft04.jpg)
Sandringham of British Overseas Airways Corporation (1950s).

http://www.cad.gov.hk/english/60th_images/aircraft06_resize.jpg (http://www.cad.gov.hk/english/60th_images/aircraft06.jpg)
DC4 of Cathay Pacific Airways (1954).

http://www.cad.gov.hk/english/60th_images/airport10_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport10.jpg)
On 16 June 1954, the master plan for the development of Kai Tak Airport was approved by the government. The runway promontory covered an area of 150 acres and supported a 7 200-foot paved runway.

http://www.cad.gov.hk/english/60th_images/airport11_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport11.jpg)
Kai Tak Development in 1956-57.

http://www.cad.gov.hk/english/60th_images/airport12_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport12.jpg)
Kai Tak Development in 1958.

http://www.cad.gov.hk/english/60th_images/cad11_resize.jpg (http://www.cad.gov.hk/english/60th_images/cad11.jpg)
On 21 September 1959, the Temporary Passenger Terminal Building of Kai Tak Airport commenced operation.

http://www.cad.gov.hk/english/60th_images/cad14_resize.jpg (http://www.cad.gov.hk/english/60th_images/cad14.jpg)
Control Tower above the Kai Tak Passenger Terminal Building in 1960's.

http://www.cad.gov.hk/english/60th_images/cad15_resize.jpg (http://www.cad.gov.hk/english/60th_images/cad15.jpg)
Air Traffic Control Centre in 1960's showing air traffic control enroute sector positions. Aircraft position reports received from pilots were regularly updated onto paper-stripboards.

http://www.cad.gov.hk/english/60th_images/airport16_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport16.jpg)
With no other runway in the world demanding such a tight, curved approach, the lighting pattern had to be unique to Kai Tak.

http://www.cad.gov.hk/english/60th_images/airport19_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport19.jpg)
Viewing Gallery.

http://www.cad.gov.hk/english/60th_images/cad19_resize.jpg (http://www.cad.gov.hk/english/60th_images/cad19.jpg)
The new Air Traffic Control Centre in Kai Tak was commissioned on 31 August 1980.

http://www.cad.gov.hk/english/60th_images/airport21_resize.jpg (http://www.cad.gov.hk/english/60th_images/airport21.jpg)
In the late 1980's, at peak traffic periods, squadrons of 747s seem to descend simultaneously to decant their throngs into the terminal, facilities are understandably strained.

nice photos!

HK Air Cargo Terminals 1Q Throughput Up 8.2% On Year
10 April 2006

HONG KONG (Dow Jones)--Hong Kong Air Cargo Terminals Ltd. said Tuesday its throughput in the first quarter rose 8.2% to 576,116 metric tons from 532,348 tons in the same period last year, fueled by sustained growth in regional economies.

In March alone, the throughput at Hactl, which handles most of the cargo moving through Hong Kong's international airport, rose 7.2% to 225,999 tons from 210,905 tons in March 2005.

Hactl is jointly owned by Swire Pacific Ltd. (0019.HK), Jardine Pacific Ltd., Wharf (Holdings) Ltd. (0004.HK), Hutchison International Port Holdings Ltd., China National Aviation Corporation, Cathay Pacific Airways Ltd. (0293.HK) and CITIC Pacific Ltd. (0267.HK).

Invisible wall stops air traffic both ways
Politics is preventing a deal, say Tom Mitchell and Justine Lau.
12 April 2006
Financial Times

China's other Great Wall is an invisible 30,000 ft high barrier running the length of Hong Kong's border with the Shenzhen special economic zone in southern Guangdong province.

Enforced by China's aviation authorities, no aircraft may cross the border at an altitude of less than 30,000 ft, compelling airlines landing or taking off in Hong Kong to make long and costly detours over the South China Sea.

For Cathay Pacific Airlines, Hong Kong's dominant aviation group, this invisible air traffic control barrier doubles as a symbol of the other obstacles separating it from what should be its natural hinterland in China.

On Monday Cathay and Swire Pacific, its parent, said they were involved in delicate negotiations with Air China, China's flag carrier, about a possible restructuring of the complicated web of cross-holdings that link the two companies, their parents and Citic Pacific, a Beijing-backed Hong Kong conglomerate.

The ties that bind these parties include Cathay's 9.9 per cent stake in Air China, Citic's 25.6 per cent stake in Cathay and Hong Kong-based Dragonair, a regional carrier jointly controlled by Air China and Citic. Cathay and Swire have a minority 25.5 per cent interest in Dragonair.

At stake for Cathay is greater exposure to China's much-coveted aviation market, which it could obtain by boosting its stake in either Air China or Dragonair.

Cathay serves just two mainland cities - Beijing and Xiamen in south-east China - while Dragonair flies to 22 mainland destinations and is highly profitable.

According to sources close to the negotiations, in exchange Air China or its parent - China NationalAviation Holding - would expect a stake in Cathay Pacific.

Both of these objectives could be facilitated if Citic, which has expressed adesire to shed non-core businesses in Hong Kong and shift its investment focus to China, was to sell down its stakes in Dragonair and Cathay.

But even then a deal would remain difficult to close.

"Cathay is keen to get more of Dragonair to build a bigger Chinese network - but is Beijing willing to give up control?" asks one aviation analyst. "I don't think so. You have a situation where everyone wants more."

All parties have also appeared to rule out the possibility of a full merger between Cathay and Air China, which was the subject of intense speculation in Hong Kong a year ago.

In their joint statement issued late on Monday night, Swire declared its intention to remain "the principal shareholder in Cathay in the long term". Air China added that CNAH would remain its controlling shareholder.

"There are entrenched politics in all of this," another analyst says. "I can't believe that the factors that killed a (shareholding) deal last year have all evaporated and moved on . . . Someone has to take the less favourable side of the deal."

For their part, Air China and other mainland airlines would like to secure fifth-freedom rights in Hong Kong, which would allow them to continue on to other Asia-Pacific destinations and beyond.

This is one of the focal points of long-runningair services negotiations between Hong Kong and China, another roundof which reconvened yesterday.

Such a concession would pose a major competitive threat to Cathay's lucrative network of international connections.

Like the original, China's second Great Wall is a two-way barrier.

HK Airport Sets Single-Day Record For Flights
15 April 2006

HONG KONG (AP)--Hong Kong's airport handled 870 flight movements Friday - a single-day record for the facility, the Civil Aviation Department said Saturday.

The heavy traffic was due to the start of the long Easter holiday weekend, a popular time for Hong Kongers to travel, the department said in a statement.

"The Civil Aviation Department is very encouraged by this new record, which reinforces Hong Kong's status as an international and regional aviation hub," the statement said.

The 870 flight movements marked a 13.4% jump in the daily average of 767 movements, the statement said. The previous single-day record was set Jan. 27 with 853 flight movements, the department said.

Most of the extra flights were to mainland China, Northeast Asia and Southeast Asia, the statement said. The most popular destination was China's southern city of Guangzhou, followed by Bangkok and Osaka, Japan, it said.

HKIA Reaches New Height Air Cargo Throughput in March
AA Press Release

(Hong Kong, 16 April 2006) - Cargo throughput at the Hong Kong International Airport (HKIA) set a new monthly record in March, reaching 320,000 tonnes in total. Passenger traffic and aircraft movements also saw healthy growth in the same period.

Fuelled by a strong rebound in air traffic after the Chinese New Year (CNY) holiday and the continuously robust demand from major markets including US, Europe and Japan, cargo throughput at HKIA grew 10% in March over the same period last year.

In the meantime, the rapid resumption of business travel after CNY holiday has contributed to the growth in monthly passenger throughput, up 7% to 3.55 million from the same period last year, despite that Easter was in March last year. Aircraft movements also grew 10.8% to 23,620 as supported by the persistent growth in passenger and cargo traffic.

Last month also saw a new airline start operating at HKIA. Qatar Airways commenced its daily non-stop flight between Hong Kong and Doha on 26 March. This new Hong Kong - Doha route provides an additional air link between Hong Kong and the Middle East and further strengthens HKIA's position as a regional and international aviation hub.

Commercial Director of the Airport Authority (AA) Mr Hans Bakker welcomed the latest figures. "Growth trends of international and regional cargo remain strong. We expect the current growth momentum to sustain in April in view of the anticipated surge in export before the Chinese Mainland's Labour Holiday," he said.

"April's passenger traffic also looks promising with Easter falling in mid-April and the Guangzhou Trade Fair and a series of other trade fairs in Hong Kong scheduled for this month. The last weekend of April falling on the eve of the Labour Day Golden Week will stimulate passenger flow too," added Mr Bakker.

For the full financial year of 2005/2006 ended in March, passenger and air cargo throughput totalled 41.6 million and 3.48 million tonnes, increasing by 8.7% and 10.5% year-on-year respectively. The aircraft movements grew 11.4% to 270,000.

Airport lifts cargo volume to record
17 April 2006
South China Morning Post

A post-Lunar New Year bounce saw Hong Kong airport handle a monthly record of 320,000 tonnes of cargo in March, an increase of 10 per cent over the same month last year and a 29 per cent jump over average cargo volume in the first two months.

Meanwhile, state media reported over the weekend that the Ministry of Commerce had added its approval to plans by an Airport Authority-led joint venture to manage Zhuhai's underused international airport.

For the year to last month, passengers and air cargo throughput at Hong Kong airport was 41.6 million and 3.48 million tonnes an increase of 8.7 per cent and 10.5 per cent, respectively.

"Growth trends for international and regional cargo remain strong," Airport Authority commercial director Hans Bakker said.

"We expect the current growth momentum to be sustained in April in view of the anticipated surge in exports before the mainland's labour holiday."

Hong Kong's strong performance contrasts sharply with that of Zhuhai, the least used of the Pearl River Delta's five airports. While the $6 billion facility has an annual cargo capacity of 600,000 tonnes, last year Zhuhai handled slightly more than 10,000 tonnes.

Yesterday, official reports cited Zhuhai officials as saying the Ministry of Commerce added its approval to the management plans last month. It was unclear if further approvals were required, and the reports said a date for the venture to start operations remained undecided.

After nearly five years of negotiations, officials from Hong Kong and Zhuhai submitted a co-operation plan to Beijing in May last year.

In addition to the equity stake and the 20-year duration, the deal also calls for the Airport Authority to invest $200 million in the venture.

Former blue chip poised for take-off
Aircraft maintenance firm Haeco is still good value despite hitting historic high, writes Henry Chan
16 April 2006
South China Morning Post

The market has never forgotten the former blue-chip Hong Kong Aircraft Engineering Co (Haeco), the only company in the city involved in aircraft maintenance.

Based in Hong Kong and Xiamen, this Swire Pacific associate provides maintenance for foreign and mainland airlines. The share price has risen from $9 in 1998 to a recent historic high of $78.

So is it too late to jump in now? I don't believe so, remember that share price means nothing; it is valuation and future profit growth that count.

The 2005 results were highly satisfactory. Net profit was $618 million, up 41 per cent year on year, or $3.72 per share, on consolidated sales of $3.1 billion, up 46 per cent. A generous dividend of $1.60 per share was declared for 2005, up 47 per cent year on year. Although results were inflated by consolidation of its Xiamen-based heavy maintenance subsidiary, Taikoo Aircraft Engineering Co (Taeco), the strong growth of Taeco and the Hong Kong operation (limited only by capacity) should not be undermined.

The Hong Kong aircraft maintenance division, located at Chek Lap Kok, increased year-on-year sales by 14.5 per cent to $2.26 billion. Operating profit was $300 million, up 49 per cent. Sales growth during the second half was an even faster 21 per cent year on year. The dramatic growth in sales and operating profit was probably due to the only hangar at the airport running at full capacity.

Aircraft movements handled by line maintenance gained 13 per cent year on year to 253 per day; heavy maintenance sold 1.6 million man-hours, up 15 per cent. Fifty-three per cent of work catered to foreign airlines. Haeco just had too much business to do. The much higher profit margin was probably a result of high utilisation and higher service charges.

To cater for a booming market, Haeco is building a second hangar in Hong Kong for $440 million, which will start operation later this year. The new hangar will eventually employ 600 staff to provide an extra 800,000 man-hours of service. That equals 50 per cent of existing heavy maintenance capacity. If demand for aircraft maintenance remains robust, which should not be an aggressive assumption given the role of Hong Kong as a major air-traffic hub, then Haeco should enjoy robust sales and profit growth next year.

The mainland aircraft maintenance division, dominated by Taeco, booked sales of $928 million, up 452 per cent year on year. Operating profit was $201 million, up 21 per cent. Although results were inflated by consolidating full-year results of Taeco for the first time, organic growth was still robust.

Sales of Taeco gained 19 per cent year on year to $722 million, operating profit gained 19 per cent also. Specialising in aircraft heavy maintenance, Taeco currently has four hangars. The latest one started operations in December, but Taeco already has so much business that it will build a fifth hangar by 2007. Taeco serviced Japan Airlines, Cathay Pacific and All Nippon Airlines, besides 1,026 mainland flights. It also helped Boeing to convert 747-400 passenger aircraft to freighters. Share of profit of jointly controlled entities was $267 million, up a superficially low 4.3 per cent year on year, since Taeco was accounted for as a fully consolidated subsidiary.

Excluding a $70 million share of profit of Taeco in 2004, share of profit actually gained 44 per cent year on year in 2005 since the 45 per cent-owned engine maintenance company Hong Kong Aero Engineering Services Ltd (Haesl) earned 45 per cent more profit.

Last year, Haesl handled 202 engines, up 6.3 per cent year on year. Major clients were Cathay Pacific, Emirates Airlines and Rolls Royce. Singapore Aero Engine Services Pte, which Haesl owns 20 per cent, also increased profit. Given Cathay Pacific's expanding fleet and accelerating Chinese passenger and cargo aviation demands, Haeco will probably see a lot more aircraft maintenance demand.

This year, Haeco could capture income of $3.6 billion, up 15 per cent year on year, and net profit could be $715 million, up 15 per cent, or $4.30 per share. At $75.75 per share, Haeco is traded at a 2006 price/earnings ratio of only 17.4 times. If growth momentum continues, the 2007 valuation should be even lower.

The major risks to Haeco are a slowdown of Hong Kong air traffic and a disease epidemic.

On Thursday, my $10 million simulated portfolio had earned a return excluding dividends of 27.8 per cent since inception in January 2005, outperforming the Hang Seng Index by 6.8 per cent. Dividends gave an extra return of 4.8 per cent. I disposed of 2,000 shares of HSBC and 30,000 of China Resources in exchange for 28,000 shares of Chevalier International and 30,000 of Shanghai Industrial.

Henry Chan is the head of research at Quam (IA) Limited. He owns shares of Shanghai Industrial.

Zhuhai Airport, HK Airport Get Government Nod

ZHUHAI, April 19, SinoCast -- Zhuhai Airport Group Corp. and Hong Kong International Airport have finally gained the approval upon their cooperation from the Ministry of Commerce of China after talks as long as six years.

The spokesperson for the Airport Authority Hong Kong claimed that both sides had just received government approval and not reached a final agreement yet. The two airports will come into further negotiations upon the details of their cooperation, confirmed Xian Wen, vice mayor of Zhuhai, a coastal and economically fast-growing city in Guangdong Province.

The two airports are rumored to just join hands in their management during the initial period. The Kong Kong airport is likely to rent the equipment of Zhuhai Airport for 20 years at a low price from CNY 200 million to CNY 300 million. In the future, the airport is reported to consider buy into the mainland airport.

Citic adds weight to rumours
21 April 2006
South China Morning Post

About 13 months ago, Below Deck and a colleague turned the media spotlight on talks concerning a potential exchange of equity between Cathay Pacific Airways and Hong Kong Dragon Airlines, their parent companies and associates.

The reports were duly brushed off by the listed parties, after an inquisitive stock exchange asked for their reaction, as little more than "exploring opportunities in further co-operation", while other firms not beholden to the exchange dismissed the reports of a merger between Hong Kong's biggest airlines as speculation.

As you are probably aware, the merger "rumours" resurfaced again this month, prompting more declarations. The latest conceding to discussions about "operational co-operation" and "the realignment of shareholdings in Cathay Pacific, Air China and Dragonair".

In reality, little has changed since the story surfaced in March last year. But the talks, which have been discreetly if sporadically held all along, were given added impetus by the emergence of Citic Pacific as an active seller of shares in Cathay Pacific and Dragonair.

When Citic chairman Larry Yung Chi-kin (right) this month labelled its minority - but not minor - shareholdings in the carriers as "non-core assets" it was committed to divest, he was reiterating a corporate strategy that had been in the public domain for more than a year.

But when he singled out airlines as part of that divestment, tongues started to wag again about the shape of a shakeout.

Below Deck rarely rubs elbows with Mr Yung and his ilk but it seems likely that you don't earn Forbes' title as China's richest man without having a strong grip on commercial sense. And by following those same sensibilities one can arrive at some fairly logical conclusions about what the future holds - or at the very least eliminate some of the more spurious rumours.

Citic's contribution to last month's four-party disclosure to the exchange revealed that while it may divest some of its 25.4 per cent stake in Cathay, it intended to remain a "significant shareholder" in the long term. It made no such guarantee about its 28.5 per cent stake in Dragonair.

In other words, it was committed to act in Cathay's best interests for the long term, ostensibly ruling out any sale to boost China National Aviation Corp's (CNAC) 43.29 per cent stake in Dragonair past the majority-control threshold.

Analysts believe such a move would signal an end to the desirable merger sending down Cathay's stock value.

Moreover, Citic's stake in Dragonair would fetch a far bigger premium if sold en bloc to Cathay or its parent Swire - giving them majority control of Dragonair - rather than in pieces.

Such a move would also greatly boost the value of the Cathay stake Citic holds, part of which could then be sold to an interested mainland party - say CNAC or its parent, Air China Group.

A stake of 10 to 15 per cent of Cathay would likely come with a seat on the board to match the seat Cathay was awarded on Air China's board last year when it bought 10 per cent of the mainland's biggest carrier.

No doubt China's other struggling airlines would view such a deal dimly, adding to the political hurdles to be surmounted before commercial logic can take the fore.

Surely China wouldn't allow politics to get in the way of commerce?

It's interesting that as these issues get hammered out over the next few months, negotiators from both sides of the border will be busy hammering out a new air services arrangement between the two polities.

Ostensibly, it is hard to see how this deal can be struck - that is, how Beijing can award new traffic rights for Hong Kong airlines to mainland cities and beyond - until the carriers' future ownership structure is clear.

Officials and executives may tell you that the two deals are being negotiated in isolation from each other but Beijing is unlikely to award the same level of new route rights to Hong Kong after the merger of Cathay and Dragonair as it would if the two carriers were competing.

Some cynics would have you believe China's strategy will follow all historic precedents regardless of how the shareholding talks emerge: give Cathay as little access to the mainland's premier commercial centres as possible.

But if Cathay manages to take Dragonair under its wing, the talks become rather less meaningful at Swire House.