The Hong Kong Special Administrative Region (HKSAR) government announced February 3 that it signed an agreement with General Administration of Civil Aviation of China to facilitate air transportation between the mainland and Hong Kong.

The arrangement, which was signed Wednesday in Beijing, grants airlines of both sides equal opportunities to increase services to meet the demands on traffic brought by market forces. This could give Hong Kong airlines a 60% increase in shipping capacity.

The regular charter services operated by airlines will be converted to scheduled services. Passengers, shippers, the tourist sector and the cargo industry will all benefit from the arrangement.

"Economic, trade, tourism and other links between Hong Kong and the mainland have been increasing since July 1997. The demand for air services between Hong Kong and the mainland is very strong and growing steadily. The conclusion of the arrangement is very important to the development of air services between the two places," said Stephen Ip, secretary for economic services of HKSAR.

"It will also help to strengthen our linkages and cooperation in various sectors and promote the economic development of both Hong Kong and the mainland," added Ip.

At present, a total of seven airlines operate scheduled and regular charter services, providing some 400 services per week between Hong Kong and about 40 cities in the mainland. The seven airlines are Dragonair, Air China, China Southern, China Southwest, China Northern, China Eastern and China Northwest.

(Xinhua)