Australia and Hong Kong fail to reach agreement on air pact

Airline Industry Information, Nov 21, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

New air pact discussions between Australia and Hong Kong have reportedly collapsed following a day of talks on Tuesday (18 November).

The air pact would have increased passenger capacity on routes between Hong Kong, Australia, Europe and the US, however the two sides failed to reach an agreement. Australian negotiators are said to have refused to either increase capacity between Hong Kong and Australia or agree to "fifth freedom" rights from Australia to the US.

The collapse means that Dragonair will have to wait until there is a new air pact before it can operate services between Hong Kong and Sydney.

As of yet no date has been set for the third round of negotiations. Meanwhile, talks between Hong Kong and the UK on an air pact are scheduled to be held next week, reported The Associated Press.

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