U.S., Hong Kong reach open-skies pact

WASHINGTON -- The U.S. and Hong Kong reached an agreement that will increase air service between the two countries, and should clear the way for implementation of the long-standing code-share deal between American and Oneworld partner Cathay Pacific.

American said it plans to place its code on Cathay flights to Hong Kong from New York, Los Angeles and San Francisco. It also plans to place its code on Cathay flights beyond Hong Kong to "key destinations" throughout Southeast Asia, including Singapore and Bangkok.

Meanwhile, Cathay plans to place its code on American services to many cities beyond its U.S. gateways.

The U.S.-Hong Kong agreement gives Hong Kong carriers the right to be phased in over two years and to serve 25 U.S. cities on a code-share basis with U.S. partners.

Other carriers also should be able to take advantage of the agreement. There were reports, for example, that United may add a second daily Hong Kong-Tokyo flight.

The deal allows a two-year phase-in of 28 additional weekly flights (which would amount to four dailies) for U.S. passenger carriers between Hong Kong and third countries. The 28 include no more than seven additional weekly flights (amounting to one daily) for Hong Kong-Tokyo and no more than four for Hong Kong-Osaka.

Carriers in both countries will receive unlimited rights to place their codes on the flights of third-country carriers for U.S.-Hong Kong service, which is something other alliances, such as Star, may use.

Also, effective immediately, carriers will be allowed to fly between Hong Kong and any U.S. city, eliminating the previous limit that allowed the use of only six gateways in the continental U.S.

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