Officials have been accused of protecting Cathay Pacific at the expense of consumers and the economy after three days of air traffic talks with the US ended without agreement yesterday.
The United States had sought expanded access to the Hong Kong market for US-based carriers, which would have increased traffic through Chek Lap Kok and potentially lowered air fares.
However, with the SAR Government insisting on reciprocal rights to the US market, the two sides were unable to find any common ground on which to expand the current air-service agreement.
The US delegation expressed disappointment. 'There was clearly a willingness to liberalise,' one US official said. 'But unfortunately, even on the cargo side, the Hong Kong Government was not prepared to offer enough meaningful opportunities or flexibility to make up a viable package.' Dr Sunny Kwong Kai-sun, professor of economics at the Chinese University, said the Economic Services Bureau was using the US Government's restriction on foreign carriers entering its domestic market as an excuse to delay opening the market. 'I think the Government is delaying liberalisation,' Dr Kwong said. 'The Hong Kong side is pretty sure the US will not grant [the right to service its domestic market], so they use it as a stumbling block.
'This is a pretty classic case of a government protecting a monopoly,' he said in reference to Cathay, Hong Kong's de facto flag-carrier.
The bureau rejected suggestions it was stalling liberalisation to protect Cathay, saying it had offered 'very substantial' concessions.
'Our objective is to progressively liberalise the air service arrangement,' an official said. 'And we adhered to that policy during the talks.' The biggest differences are over so-called 'fifth-freedom' rights, which would allow US carriers to pick up passengers and cargo in Hong Kong and fly to destinations other than the US.
