Cathay Pacific layoffs｜Airlines don’t have to dismantle air rights and route points if they want to fly

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Written by: Golden Chess

2020-10-21 19:46

Last update date: 2020-10-21 19:46

Cathay Pacific Airways issued a notice today (21st) to cut 8,500 jobs, and Dragonair ceased operations today.

Cathay Pacific said that it intends to seek regulatory approval for Cathay Pacific and its wholly-owned subsidiary Hong Kong Express to operate most of Cathay Dragon’s routes.

It involves issues such as navigation rights, waypoints, and so on, but what items are included in navigation rights?

Who approves it?

Luo Xiangguo, senior consultant of the Aviation Policy Research Center of Chinese University, explained that air rights are an air agreement signed by two places, covering the number of flights, waypoints, and airspace.

The Hong Kong's air traffic rights are authorized by the central government to negotiate air transportation arrangements with other countries and regions.

Take Thailand as an example. Hong Kong Airlines’ destinations in the country initially only covered Bangkok, and then gradually opened to Chiang Mai, Pattaya and other places. Airlines need traffic rights to operate to and from designated destinations. Related routes.

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Navigation rights are like a treaty that belongs to a reciprocal agreement between the two governments​

Cathay Dragon operated more than 40 destinations before the suspension, mainly on mainland routes, including Southeast Asia and India routes.

Luo Xiangguo explained that air traffic rights are the air transportation arrangements between the two places, and the Hong Kong government is responsible for opening applications and competition to local airlines.

The content of air rights includes flights between the two places, the number of flights, and even the number of seats. That is, when the two governments discuss, they can be careful to restrict the types of flights used between the two places.

The other form of passenger air rights is like "a two-party agreement, like a treaty, and the principle is equal."

Luo continued that air traffic rights cover waypoints, and when the relationship between the two places is better and the passenger volume increases, more airlines can be opened to operate flights.

He cited, for example, the agreement between Hong Kong and Thailand. Initially, airlines could only operate flights between Hong Kong and Bangkok, and later expanded to airports in Chiang Mai, Pattaya and other places. ".

As for flights over the airspace, Luo Xiangguo explained that airspace issues are negotiated between the government and the air traffic control departments of other countries and regions. The air rights will also include the route requirements to the designated waypoints and the airspace over which they fly.

If there are any changes to the airspace, inter-governmental negotiations will also be undertaken.

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Transportation and Housing Bureau: Navigation rights are owned by the Hong Kong government and are an important public resource

A spokesperson for the Bureau of Transport and Housing pointed out that traffic rights are a bilateral air services agreement signed between the government and the government, giving local registered airlines in their respective regions/countries the ability to operate and connect the two The rights of points, routes and related frequency/capacity in each region/country.

The spokesperson continued that the traffic rights used by airlines registered in Hong Kong belong to the Hong Kong government and are an important public resource for Hong Kong as an international aviation hub.

In addition to obtaining the traffic rights allocated by the SAR government, locally registered airlines also need to apply for the necessary permits from other relevant authorities involved in the proposed route. 

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Cathay Pacific Airways Cathay Pacific lays off Dragonair