Mineta calls for roomier aviation agreement between the U.S. and Hong Kong
By Janet Ng
Plane service to and from Hong Kong may increase if an Open-Skies agreement is reached between the United States and Hong Kong. On July 8 and 9, officials from the Department of Transportation and the Hong Kong government gathered to discuss open trade in the airlines market. Such an arrangement would result in more frequent flights of services and goods between the two countries.
The United States wants to eliminate restrictions affecting prices, frequency of flights, and the number of U.S. cities with service to Hong Kong. Several of the airplane companies involved are American, United, and Cathay-Pacific.
“We want to open the market as much as it will allow,” Bill Mosley, public affairs specialist at the Department of Transportation, said.
Transportation Secretary Norm Mineta encouraged Hong Kong authorities to expand the aviation industry. In a statement to the Hong Kong-U.S. Business Council, Mineta said, “An open regime for aviation services would allow Hong Kong to build on its economic strengths, geographic location, and historical role as a transshipment center to remain a predominant logistic and trade hub for the region.
“We strongly believe that such a regime will benefit airlines and customers alike through more efficient operations and better services at the lowest possible fares.”
Such an expansion would increase trade and could create extra jobs. It would also cause increased traffic at the San Francisco International Airport (SFO). In the 12-month period ending June 2000, some 1,355,472 passengers flew between the United States and Hong Kong, according to the Bureau of Transportation Statistics. Officials at SFO are in favor of an Open-Skies agreement.
“International operations aren’t subject to delays. Domestic flights are,” Ron Wilson, director of community affairs at SFO, explained.
He added, “It’s good for business in general.”
This open trade agreement is separate from that with China, who granted permission for Hong Kong to negotiate a stand-alone arrangement. The United States and Hong Kong arrived at their first aviation contract in 1995. Under the United Kingdom government, Hong Kong’s aviation contract with the United States was more restrictive.
Hong Kong seems to be eagerly looking forward to talks. According to Jean Ip, principal information officer at the Hong Kong Economic Trade Office at the Chinese Consulate in San Francisco, an opening of the aviation market would serve the overall economic interests of the island.
“Hong Kong is committed to progressive liberalization of the air services market and the development of Hong Kong as an aviation hub,” she said.
Although these meetings are just the beginning of negotiations, U.S. officials remain optimistic that they will proceed to more formal conferences. Authorities do not know how long it will take for a solid agreement to be reached.
“We hope that these talks are a sign that the Hong Kong government is ready to move forward,” Mosley said.
The U.S. has signed Open-Skies agreements with economies in the Asian Pacific region, including Korea, Taiwan and Malaysia. Worldwide, the United States has such contracts with 53 aviation partners. There is unrestricted service by the airlines of each side to, from, and beyond the other’s territory, without restrictions on where carriers fly, the number of flights they operate, or the prices they charge. In May, the United States signed the first multilateral Open-Skies agreement with Brunei, Chile, New Zealand, and Singapore.
Numbers reflecting passenger traffic to countries in the Asian Pacific region have increased slightly since signing open trade contracts with the United States. For example, Taiwan signed with the United States in March 1997. According to the Bureau of Transportation Statistics, in 1997, passengers to and from Taiwan numbered around 2,108,780. In 1999, traffic increased about 90,000 passengers, to 2,197,921.
Perhaps more customers will fly American Airlines once the aviation market opens up. But one frequent flyer to Hong Kong, Laureen Hom, currently uses Singapore Airlines and is unlikely to switch because of what she described as superior services.
“We get our own TVs and really good food … and [they serve] Godiva chocolate!” she said. |
