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Pang points to open-skies shift

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The Government has agreed that Hong Kong should adopt a more liberal aviation regime to develop the air transport industry and boost its bid to become the region's premier logistics hub, according to Airport Authority chief executive David Pang.

Mr Pang said on the sidelines of the Asia-Pacific Economic Co-operation Forum meeting in Shanghai that he had discussed the issue with the Economic Services Bureau - spearhead of the SAR's new logistics initiative - which agreed liberalisation was the right direction. Details had yet to be finalised but from the authority's point of view, Mr Pang hoped it would happen as soon as possible.

His remarks came after weeks of growing pressure from the aviation industry for the Government to open the skies.

Express operators such as Federal Express and United Parcel Service had said Hong Kong's logistics dream would never be realised unless the bureau, which controls aviation regulations, allowed airlines greater flexibility to improve trade flow.

Passenger and air cargo volumes at the airport have been on the wane for most of the year, with analysts saying the industry was in need of a boost.

The airport's largest cargo handler, Hongkong Air Cargo Terminals (Hactl), yesterday said its figures for the third quarter suggested volumes were declining at 13.4 per cent a year.

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