New Air Services Agreement between Taiwan and Hong Kong

A new Air Services Agreement has been reached between aviation authorities in Taiwan and Hong Kong which will further liberalise the market between the two countries. At the moment, the passenger and cargo capacities between Hong Kong and Taiwan are limited to 170 flights and 1,700 tonnes per week respectively for each side. However, by Summer 2012 passenger capacity will increase by around 20 per cent and cargo tonnage by approximately 70 per cent.

Under the revised terms 205 passenger flights will be permitted between the two countries, meaning an additional five flights a day in each direction, while up to 3,000 tonnes of cargo will be allowed to be carried.

“The arrangement will greatly promote the ties between Hong Kong and Taiwan in terms of business, cultural exchange and leisure travel,” said Stanley Hui Hon-chung, Chief Executive Officer, Airport Authority Hong Kong. “In addition, the arrangement allows new airlines to operate services between Hong Kong and Taiwan, which will translate into more choices of airlines and flight frequencies for passengers.”

There are currently five airlines offering flights between Taiwan and Hong Kong, as the table below illustrates. Cathay Pacific Airways currently dominates the capacity in this market with a 37.6 per cent share of the available seats, followed by China Airlines (30.3 per cent), Dragonair (15.4 per cent), EVA Air (13.7 per cent) and Mandarin Airlines (3.0 per cent).

Cathay Pacific Airways, the largest carrier in the market has also welcomed the revised agreement. “We are glad to see the signing of the air services arrangement between the two sides. We are also encouraged that more flights will be made available between Hong Kong and Taiwan when the ASA becomes effective. We are always interested to operate more flights to Taipei and other destinations in Taiwan,” a spokesman for the airline confirmed.