onebir
Joined: 17 Nov 2007
Posts: 48
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 Posted: Fri Dec 28, 2007 12:26 pm Post subject: Mainland China HK market liberalised |
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Under a new MoU: | Quote: | | On operating rights on individual routes, starting from the end of March 2008, there will not be any restriction on the number of designated airlines on most of the routes. As for the Beijing, Shanghai, Guangzhou, Shenzhen, Kunming, Dalian and Chengdu routes, each side may designate three airlines to operate passenger/all- cargo services and two other airlines for all-cargo services with effect from summer/autumn 2008. |
Plus capacity restrictions on 14 routes are being removed. But | Quote: | | for the Beijing, Shanghai, Guangzhou, Shenzhen, Kunming, Dalian and Chengdu routes, the capacity will be increased moderately. |
A step in the right direction, but funny so many restrictions remain. It's supposed to be one country, and many countries remain cheerfully separate but manage to have open skies. 
Fortunately the proximity of Shenzhen, Macau, and to some extent Guangzhou to HK exerts some downward pressure on mainland-HK flights. And this move should increase competition on mainland-HK routes, adding to that pressure, and reducing the premiums airlines flying direct to HK are able to charge relative to those flying to nearby airports. But it seems unlikely prices for mainland-HK routes would go below those of the nearby alternatives, and with the mainland domestic market remaining pretty heavily regulated, this puts quite a high floor on mainland-HK fares. |
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