I INTRODUCTION

Hong Kong is one of the most important regional aviation hubs for Asia and boasts one of the busiest airports in the world. At present, more than 100 airlines operate at Hong Kong International Airport (HKIA), connecting HKIA to over 190 destinations worldwide, including 42 locations in mainland China.2 For the year ending 31 March 2016, HKIA handled 70.5 million passengers and 4.52 million tonnes of cargo, making it the world's busiest cargo airport for the sixth consecutive year.3 As Asia leads the world in recovering from the global economic downturn, Hong Kong's vibrant aviation sector continues to offer immense investment opportunities.

i Access to the market

In respect of air carriers, access to the market depends on bilateral air services agreements (ASAs) between the government of the Hong Kong Special Administrative Region (the Hong Kong government) and other countries. Local and foreign carriers are treated equally. The level playing field in the market allows carriers to adjust their air services according to demand, while attracting new carriers to operate flights to and from Hong Kong. The efficiency of the system is evidenced by the fact that since the HKIA opened, the number of airlines operating at HKIA has grown from 60 in 1998 to 108 in 2012.

The advent of low-cost carriers presented new competition to traditional carriers and a number of low-cost carriers. The Airport Authority Hong Kong (AAHK) treats low-cost carriers ‘on an equal footing as any other carrier'4 and strives to facilitate their operational needs by providing facilities such as ‘direct taxi-in and taxi-out parking stands that allow short turn-around time of aircraft' and ‘reduced parking charges for parking stands for narrow-body aircraft which are commonly used by low-cost carriers'.5

There are 66 ASAs currently in force between the Hong Kong government and other countries; six of them have been signed but not yet come into force - Estonia, Greece, Kazakhstan, Madagascar, Serbia and Spain.6 The Hong Kong government is always seeking to expand and liberalise these ASAs. This is in line with the government's obligations under Article 128 of the Basic Law of Hong Kong, which came into effect on 1 July 1997, providing that: ‘The Government of the HKSAR shall provide conditions and take measures for the maintenance of the status of Hong Kong as a centre of international and regional aviation.'

Most of the ASAs entered into by the Hong Kong government provide for multiple airline designation allowing any number of airlines to operate scheduled services between Hong Kong and the other country under the relevant ASA as and when needed.7

ii Labour and employment issues

Although there is no major legislation specifically addressing the labour and employment issues of the civil aviation sector, the Employment Ordinance (Chapter 57) (EO), which is applicable to most employees in Hong Kong, does cover employees of the civil aviation sector. Some of the key areas covered by the EO include:

    • a paid annual leave, statutory holidays and rest days;
    • b sickness allowance and paid sickness days;
    • c maternity leave and payment thereof;
    • d paternity leave and payment thereof;
    • e protection against unreasonable or unlawful variation and termination of employment contracts;
    • f severance payment and long-service payments;
    • g protection against anti-union discrimination; and
    • h statutory minimum wage protection in conjunction with the Minimum Wage Ordinance (Chapter 608), which has been revised to HK$34.5 per hour since 1 May 2017.

Specific articles of the Air Navigation (Hong Kong) Order 1995 (Chapter 448C) elaborate the rules regulating fatigue and physical condition of flight crew serving in the civil aviation industry:

  • a Article 49 prohibits a person to be under the influence of psychoactive substances when acting as a member of the flight crew.
  • b Under Article 54, the operator of an aircraft registered in Hong Kong is required to ensure that no person flying as a member of its crew is (likely to be) suffering from fatigue that may endanger the safety of the aircraft or of its occupants.
  • c Article 55 prohibits a person from acting as a member of the crew of an aircraft registered in Hong Kong if ‘. . . he knows or reasonably suspects that he is suffering from, or, having regard to the circumstances of the flight to be undertaken, is likely to suffer from, such fatigue as may endanger the safety of the aircraft or of its occupants.'
  • d Article 56 addresses the working hours of members of the flight crew. The effect of Article 56 is that:

• during a period of 28 consecutive days a flight crew member shall not accumulate more than 100 hours of flight time; and

• during a period of 12 months a flight crew member shall not accumulate more than 900 hours of flight time.

iii Regulation of slots

Slots for the HKIA are managed by the Civil Aviation Department (CAD). Since 6 July 2008 the CAD has assumed the role of schedule coordinator for the HKIA.8

The Hong Kong Schedule Coordination Office (HKSCO) was redeployed to the Air Traffic Management Division of the CAD on 3 July 2012 to continue with discharging the schedule coordination functions. The slot allocation mechanism used by the HKSCO follows the prevailing International Air Transport Association Worldwide Slot Guidelines (IATA WSG).

The HKIA is a Level 3 Coordinated Airport under the IATA WSG. All airlines or aircraft operators must obtain a slot from HKSCO for each aircraft movement (arrival and departure) before operating at HKIA, subject to limited exceptions.

iv Civil aviation regulatory regime, regulators and their powers

The civil aviation regulatory regime in Hong Kong comprises mainly primary legislation and its subsidiary regulations. The major primary legislation is the Civil Aviation Ordinance (Chapter 448), Aviation Security Ordinance (Chapter 494), Airport Authority Ordinance (Chapter 483), Civil Aviation (Aircraft Noise) Ordinance (Chapter 312), Dangerous Goods (Consignment by Air) (Safety) Ordinance (Chapter 384) and Carriage by Air Ordinance (Chapter 500).

The two major regulators of the civil aviation sector in Hong Kong are the CAD and the AAHK.

The CAD is responsible for the provision of air traffic control services, certification of Hong Kong registered aircraft, monitoring of airlines on their compliance with bilateral ASAs, the regulation of general civil aviation activities and overseeing the safety and security of airport operations. The Accident Investigation Division of the CAD is tasked with the investigation of aircraft accidents and serious incidents as required by the Civil Aviation (Investigation of Accidents) Regulations (Chapter 448B).

On the other hand, the AAHK is required to ensure that the operations of the HKIA comply with the safety and security requirements of the CAD necessary for the issue of an aerodrome licence from the CAD for operating the airport.

II LEGAL FRAMEWORK FOR LIABILITY

i International carriage

Hong Kong is a party to the Warsaw Convention, which has been amended by the Hague Protocol, and since 15 December 2006 the Montreal Convention (the Conventions) through China. The Conventions are implemented in Hong Kong by the Carriage by Air Ordinance (Chapter 500) (CAirO).

In Hong Kong, a carrier's liability for death and injury of passengers is exclusively governed by Article 17 of the Conventions (Sections 2B(1), 5(1) and 15(1) of CAirO). The liability is enforceable for the benefit of any member of the passenger's family who sustains damage by reason of the passenger's death (Sections 2B(2), 5(2) and 15(2) of CAirO). The two-year limitation period under the Conventions does not apply to any proceedings for contribution between tortfeasors, but no action shall be brought by a tortfeasor to obtain a contribution from a carrier in respect of a tort to which an article in CAirO applies after the expiration of two years from the time when judgment is obtained against the person seeking to obtain the contribution (Sections 2D(2), 7(2) and 17(2) of CAirO).

ii Internal and other non-convention carriage

Internal and other non-convention carriage is governed by a modified form of the Montreal Convention as set out in Schedule 3 of CAirO, which is very similar to the original Montreal Convention (Sections 12 and 13 of CAirO).

iii General aviation regulation

The Civil Aviation Ordinance (Chapter 448) (CAO) and its subsidiary regulations - in particular, the Air Navigation (Hong Kong) Order 1995 (Chapter 448C) (ANO Hong Kong 1995) - are the primary sources of legislation governing civil aviation.

Section 2A of the CAO implements the Chicago Convention and gives power to the Chief Executive of the Hong Kong government to make orders covering all major aspects of civil aviation in Hong Kong.

The ANO Hong Kong 1995 represents ‘the highest level of civil aviation operating regulation in Hong Kong'. It provides detailed rules on registration of aircraft, the requirements for certificates of airworthiness, equipment required to be on board on each type of aircraft, composition and licensing of crew of aircraft, etc. The ANO Hong Kong 1995 ‘is supported by policy and procedures documents such as Civil Aviation Documents, Hong Kong Aviation Requirements and Aeronautical Information Circulars'.

iv Passenger rights

There is no consumer rights legislation in Hong Kong governing compensation for delay, cancellation of flights and carriage of disabled passengers. All passenger claims are resolved in accordance with the rules provided in the Conventions as amended or supplemented by the carriage contract between the carrier and the passenger, as well as the procedure and policy set down by the air carrier. Neither the Control of Exemption Clauses Ordinance (Chapter 71) (CECO) nor the Unconscionable Contracts Ordinance (Chapter 458) (UCO) are applicable to carriage contracts that meet the minimum standards set down by the Conventions (Section 18 CECO and Section 8 UCO).

The amended Trade Descriptions Ordinance (Chapter 362) (TDO) came into effect on 19 July 2013 and expanded the coverage of TDO to include services (i.e., the provision of air services to consumers is now subject to the regulations of the TDO). Airlines should note that commercial practices, such as false trade description, misleading omissions and bait advertising, are now criminal offences punishable by a fine of HK$500,000 and imprisonment of five years pursuant to Section 18 of the TDO.

v Other legislation

Aircraft operating in Hong Kong are subject to prevention of acts of violence against civil air transport and for connected purposes under Aviation Security Ordinance (Chapter 494), the control of dangerous goods for carriage by air under Dangerous Goods (Consignment by Air) (Safety) Ordinance (Chapter 384) and the control of emission of noise under the Civil Aviation (Aircraft Noise) Ordinance (Chapter 312) (CAANO). Section 3 of the CAANO provides that no aircraft shall land or take off in Hong Kong unless the aircraft carries with it a valid noise certificate issued by the Director General of Civil Aviation or a contracting state of the Chicago Convention.

III LICENSING OF OPERATIONS

i Licensed activities

Licensing is required in Hong Kong for carriage of passengers, mail or cargo by air for hire or reward upon scheduled journeys. The relevant legislation is the Air Transport (Licensing of Air Services) Regulations (Chapter 448A) (ATLASR).

For aircraft registered in Hong Kong, Regulation 3(1)(b) of ATLASR provides that a person shall use an aircraft registered in Hong Kong on scheduled journeys only if he or she holds:

  • a an air operator's certificate (granted under Article 6 of ANO Hong Kong 1995) and a licence in respect of the journey; or
  • b a document equivalent to an air operator's certificate and an operating permit in respect of the journey.

For aircraft registered outside Hong Kong, Regulation 3(1)(a) of ATLASR provides that a person shall use an aircraft registered outside Hong Kong on scheduled journeys only if he or she holds an operating permit in respect of the journey.

ii Licences

Applications for licences to operate scheduled air services should be made to the Air Transport Licensing Authority (the Licensing Authority) (ATLA) established under Article 11 of ATLASR. In granting a licence, ATLA has to be satisfied that the applicant complies with the relevant requirements of ATLASR, and is incorporated and has its principal place of business in Hong Kong.9

Regulation 11 of ATLASR sets out the matters that the Licensing Authority shall regard when considering each licence application:

  • a the existence of other air services in the area through which the proposed services are to be operated;
  • b the demand for air transport in that area;
  • c the degree of efficiency and regularity of the air services, if any, already provided in that area, whether by the applicant or by other operators;
  • d the period for which such services have been operated by the applicant or by other operators;
  • e the extent to which it is probable that the applicant will be able to provide a satisfactory service in respect of safety, continuity, regularity of operation, frequency, punctuality, reasonableness of charges and general efficiency;
  • f the financial resources of the applicant;
  • g the type of aircraft proposed to be used;
  • h the remuneration and general conditions of employment of air crew and other personnel employed by the applicant; and
  • i the Licensing Authority shall take into consideration any objections or representations duly made in accordance with the provision of these regulations.

The Licensing Authority has the discretion to attach such conditions as it thinks fit having regarded to the nature and circumstances of the licence applications (Regulation 11(A)(4) of ATLASR).

iii Operating permits

Operating permits are granted by the Director General of Civil Aviation after considering relevant air services agreements. The operating permit granted may be subject to such conditions depending on the specific air service arrangements.

iv Ownership rules

Ownership rules are found in many ASAs and the typical provision of ownership rule in an ASA takes the following form:

The Government of the HKSAR shall have the right to refuse to grant the operating authorisations . . . or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in . . . in any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Government of . . . or its nationals.

v Foreign carriers

Foreign-registered carriers can only conduct licensed activities if there is in force an air service agreement between their home state and Hong Kong. If there is an applicable air service agreement, the foreign-registered carrier can apply for a licence or an operating permit as discussed subsection i, supra.

IV SAFETY

The majority of safety requirements for operators are set out in ANO Hong Kong 1995.

Article 7 of ANO Hong Kong 1995 provides that no aircraft shall fly in Hong Kong unless there is in force in respect of the aircraft a certificate of airworthiness duly issued or rendered valid under the law of country in which the aircraft is registered and that the conditions attach to the certificate issued or rendered valid are complied with. In addition, aircraft registered in Hong Kong are not permitted to fly unless there is in force a certificate of maintenance review in respect of it (Article 9 of ANO Hong Kong 1995).

The staffing and crew licensing requirements of aircraft are set out in Part IV of ANO Hong Kong 1995.

Article 18 of ANO Hong Kong 1995 requires an aircraft registered in Hong Kong to carry a flight crew adequate in number and description to ensure the safety of the aircraft and in accordance with the description specified in the applicable certificate of airworthiness. Article 19 further sets out the licensing requirement of the members of flight crew.

Part VI of ANO Hong Kong 1995 addresses fatigue of crew and imposes limits of flight time per month and per year as already discussed in Section I.

i Accident reporting and investigation

Accident reporting is governed by the Hong Kong Civil Aviation (Investigation of Accidents) Regulations (Chapter 448B). Regulation 5 imposes an obligation on the commander and operator of the aircraft to report accidents to the AAHK. Under Regulation 2, ‘accident' includes injury or death to passenger or crew member, damage to the aircraft, and where the aircraft is missing or completely inaccessible.

Regulation 8 provides that the Chief Executive has the power to decide whether an investigation into any accident is necessary as well as the power to appoint the Chief Inspector of Accidents and inspectors of accidents (collectively, the Inspector) for the purpose of carrying out investigations into the circumstances and causes of aircraft accidents.

Reports prepared by the Inspector may be subject to review by the Board of Review if:

  • a it appears to the Inspector that the report may adversely affect the reputation of the operator and commander of the aircraft in question; and
  • b the operator and commander of the aircraft serve notice on the Director General of Civil Aviation requesting the report to be reviewed by the Board of Review (Regulations 11 and 12).

Regulation 13 stipulates the Board of Review should be appointed by the Chief Executive and consists of:

  • a a chairman of the board, who should be a magistrate, a legal officer, or a barrister or solicitor of no less than five years' practice; and
  • b one or more assessors, each of whom shall possess aeronautical or aeronautical engineering qualifications or some other special skill or knowledge that is relevant to the conduct of the review.

Under Regulation 14, the person requesting the review has the right to give evidence and produce witnesses to the Board of Review. Furthermore, the Board has the power to grant leave to any person whom the Board deems directly affected by the review to give evidence, produce witnesses and examine any other witnesses giving evidence at the review.

The only occasion where a Board of Review was convened is in the case of the accident to Boeing MD-11 B-150 operated by China Airlines at HKIA on 22 August 1999. China Airlines sought to challenge the causal factors and other findings of the Inspector and ultimately the application for review was only allowed in part.

V INSURANCE

Insurance obligations for aircraft operating in Hong Kong are governed by the Civil Aviation (Insurance) Order (Chapter 448F). Pursuant to Sections 5 and 6, no aircraft shall land or take off in Hong Kong unless there is in force in relation to the use of that aircraft in Hong Kong a policy that insures the operator in respect of any liability that may be incurred by it in respect of:

  • a third-party risks;
  • b the death of or bodily injury to any passenger in the aircraft;
  • c any destruction or loss of or damage to baggage carried on board the aircraft;
  • d any destruction or loss of or damage to cargo carried on board the aircraft;
  • e any destruction or loss of or damage to mail carried on board the aircraft; and
  • f arising out of or caused by the use of the aircraft in Hong Kong and arising out of any one event.

In practice, the Civil Aviation Department requires all civil aircraft, whether operating commercial or non-revenue flights, to have a combined single limit (CSL) insurance that meets the following requirements:

  • a Subject to (c) below, the CSL should cover the operators' liabilities in respect of third party, passenger, baggage, cargo and mail.
  • b It may include other liability items except the liability in respect of damage to the hull of the operators' aircraft.
  • c If an operator declares in writing that the aircraft does not carry any passengers, baggage, cargo or mail, as the case may be, they will be allowed not to include those items in the CSL.
  • d The insurance cover must be on a per occurrence basis.
  • e Any aircraft not complying with these insurance requirements will not be allowed to land or take off in Hong Kong. However, this does not apply to an aircraft in an emergency.
  • f Operators are reminded that documentary proof is required from the insurance company concerned. It is incumbent on the operator that material available to the Civil Aviation Department is current. Further, operators are to provide evidence of continued insurance cover prior to the expiry of the original policy.

With regard to (d), the minimum CSLs required are as follows:

Aircraft maximum ramp or taxi weight, whichever is greater (if not applicable, maximum take-off weight or maximum weight, whichever is the greater), as stipulated in its Manufacturer's Aircraft Flight Manual or Operations Manual

Applicable amount (equivalent to)

Not exceeding 5,700 kilograms

US$15 million

Exceeding 5,700 kilograms but not exceeding 10,000 kilograms

US$25 million

Exceeding 10,000 kilograms but not exceeding 28,000 kilograms

US$60 million

Exceeding 28,000 kilograms but not exceeding 100,000 kilograms

US$200 million

Exceeding 100,000 kilograms but not exceeding 170,000 kilograms

US$500 million

Exceeding 170,000 kilograms

US$1 billion

VI COMPETITION

The Competition Ordinance (Chapter 619) (CO) was passed on 14 June 2012 and came into force on 14 December 2015. The CO prohibits, subject to (block) exemptions and exclusions, anticompetitive conduct such as restrictive agreements, concerted practices and abuse of substantial degree of market power. The Competition Commission, which is established under Section 129 of the CO, is now in operation and is expected to consider block exemptions for certain categories of agreement from the application of the First Conduct Rule. Pending the outcome of the block exemptions, the effect of the CO on the aviation sector remains to be assessed.

VII WRONGFUL DEATH

Damages will be assessed in accordance with the common law of torts but always subject to the framework and limitations of the Conventions if applicable. Other than pecuniary loss, such as loss of earnings, the claimant may also claim for non-pecuniary loss such as pain and suffering, and loss of amenity.

VIIi ESTABLISHING LIABILITY AND SETTLEMENT

i Procedure

Hong Kong courts have jurisdiction in accordance with the provisions of the applicable Conventions and the power to decide whether a foreign court is better placed to hear the claim. The limitation period for bringing a claim is two years. Claims governed exclusively by the Conventions can only be brought against the carrier; however, the carrier is not barred from seeking contribution from third parties.

ii Carriers' liability towards passengers and third parties

Liability is established in accordance with the applicable Conventions, or if the carriage is not an international carriage to which the Conventions apply, the modified version of Montreal Convention as set out in Schedule 3 of CAirO will apply. In any case, the claimant has to satisfy the threshold of damage and accident under Article 17.

Depending on the applicable Conventions, limits on liability for each passenger are as set out in Article 22 of Warsaw Convention and Article 22 of Montreal Convention. The liability cap will be removed if the claimant can establish recklessness on the part of the carrier (Article 25 of Warsaw Convention and Article 30 of Montreal Convention).

The Hong Kong case of Kwok Kam Ming & Another v. China Airlines Ltd [HCPI 660/2001] shows that it is very difficult to break the liability cap by proving wilful misconduct and recklessness.

iii Post-accident family assistance

CAD has published CAD 360 (Air Operator's Certificates Requirements Document) to explain the administrative procedures for the issue and variation of air operators' certificates (AOCs) and to indicate requirements to be met by applicants and certificate holders in respect of equipment, organisation, staffing, training and other matters affecting the operation of aircraft.10

In December 2016, CAD revised and amended CAD 360 to oblige AOCs holders to include an emergency response plan (ERP) as part of the safe management system requirement.11 An ERP shall encapsulate the provision of family assistance (ranging from services to information) to aircraft accident victims and their families. The revision expressly refers AOC holders to ICAO Doc 9998 (ICAO Policy on Assistance to Aircraft Accident Victims and their Families) and ICAO Doc 9973 (Manual on Assistance to Aircraft Accident Victims and their Families) for guidance. Hong Kong, by reason of China being one of the 191 contracting states of the International Civil Aviation Organisation (ICAO), has an obligation to implement and comply with the multifarious standards and recommended practices set by the ICAO.12

iv Product liability

Hong Kong does not have a statutory legal regime to accommodate product liability claims in the modern sense of the term. However, beyond the complicated contractual arrangements that will usually govern relationships between, for example, airlines and aircraft manufacturers, there is the likelihood of parallel claims for damages arising pursuant to Section 16(2) (merchantable quality) and Section 16(3) (fitness for purpose) under the Sale of Goods Ordinance (Chapter 26).

v Compensation

Please refer to Section VIII.ii, supra.

IX VOLUNTARY REPORTING

The CAD provides the Voluntary Incident Reporting System to capture occurrences other than accidents and serious incidents. The System allows the CAD to collect as much incident data as possible to perform meaningful analysis so as to promote accident prevention and enhance aviation safety. It is operated in a non-punitive environment and the source of information will not be disclosed unless required to do so by law, or the person concerned has authorised the disclosure.

x THE YEAR IN REVIEW

i Tax concession

Being an international hub with global aviation, the number of passengers flying in and out of Hong Kong and those flying within the Asia-Pacific region is expected to grow by about 5 per cent per annum and 6 per cent per annum, respectively, over the next 20 years.13 The Hong Kong government has proposed a bill, the Inland Revenue (Amendment) (No.2) Bill 2017, to amend the Inland Revenue Ordinance (Cap. 112) (IRO) to launch a dedicated tax regime for offshore aircraft leasing business in Hong Kong.14

ii Establishing an independent air accident investigation authority

Aviation accident reporting and investigation is governed by the Hong Kong Civil Aviation (Investigation of Accidents) Regulations (Chapter 448B), which have been amended by Annex 13 to the Convention on International Civil Aviation - Aircraft Accident and Incident Investigation (Annex 13) in February 2016, which requires the contracting states to establish an independent air accident investigation authority, unconnected to the state aviation authorities or any other entities that could interfere with the objectivity of an investigation.15 This new standard has been in effect since November 2016, and the ICAO recommends contracting states implement the same within two years (i.e., by the end of October 2018). To keep abreast of the new standard adopted by the ICAO, the Hong Kong government has announced a new initiative to establish an independent accident investigation authority fully segregated from the CAD and directly accountable to the Secretary for Transport and Housing.

iii Development in recent years

Six foreign operators commenced new scheduled passenger services during the year ending 31 March 2016. As cases in point, Etihad Airways commenced services from Abu Dhabi in April 2015 and Myanmar National Airlines started services from Yangon in December 2015. During the year ending 31 March 2016, CAD issued 138 operating permits to airlines for operation of scheduled services to and from Hong Kong.16

A new cargo terminal at HKIA operated by Cathay Pacific Services Limited, a wholly owned subsidiary company of Cathay Pacific Airways, commenced operation in February 2013. The new cargo terminal has an annual air cargo throughput capacity of 2.6 million tonnes per year.17

The AAHK and the Chicago Department of Aviation on 29 March 2011 signed a memorandum of understanding (MoU) designating HKIA and O'Hare International Airport (OIA) as ‘sister airports', promoting cooperation between HKIA and OIA in the areas of airport management and customer service. The MoU is the second of its kind, with the first being signed by the AAHK and the Beijing Capital International Airport on 28 October 2010.18

The AAHK and the Shanghai Airport Authority (SAA) on 12 October 2009 also signed a cooperation agreement for the establishment of the Shanghai Hong Kong Airport Management Co Ltd (a joint venture company) (JV).19 The JV manages Hongqiao Airport's east and west terminals, retail business of the terminals and the east traffic control centre of Hongqiao's integrated transport. The JV, with registered capital of 100 million yuan, is owned by the AAHK and the SAA in the shareholding ratio of 51 to 49 per cent.

Xi Outlook

With HKIA reaching maximum capacity, anticipated rapid growth in demand for air services and competition from airports in mainland China and Asia, the AAHK put forward expansion plans in 2011 in its proposal entitled ‘Our Airport and Our Future: HKIA Master Plan 2030'.

AAHK has undertaken to construct the third runway system (3RS) at HKIA, which will allow HKIA to handle 102 million passengers, 8.9 million tonnes of cargo and 607,000 aircraft movements per year by 2030. Following the Executive Council approval of the HK$141 billion 3RS project in March 2015, construction started in August 2016, with the new runway expected to be commissioned in 2022 and the entire 3RS project completed in 2024.20

1 Milly Y K Hung is a senior associate at Stevenson, Wong & Co. Neville Watkins was a partner at Stevenson, Wong & Co and has been retired since December 2016.

3 Airport Authority Hong Kong, ‘A Hong Kong Story - Hong Kong International Airport Annual Report 2015/16', www.hongkongairport.com/eng/pdf/media/publication/report/15_16/1516_Annual_Report_EN.pdf, accessed 30 May 2017.

4 Transport and Housing Bureau (Transport Branch), ‘Legislative Council Panel on Economic Development - Development and Operation of Low-cost Carriers in Hong Kong [CB(1)1591/07-08(03)] (26 May 2008)', www.legco.gov.hk/yr07-08/english/panels/es/papers/edev0526cb1-1591-3-e.pdf, accessed 30 May 2017.

5 Transport and Housing Bureau, ‘Legislative Council Panel on Economic Development - Operation of Low-Cost Carriers in Hong Kong [CB(1)1809/12-13(02)] (18 September 2013)', www.legco.gov.hk/yr12-13/english/panels/edev/papers/edevcb1-1809-2-e.pdf, accessed 16 June 2014 [4].

7 Ibid. 2.

8 Civil Aviation Department, ‘Schedule Coordination Guidelines for Hong Kong International Airport' (June 2014), www.cad.gov.hk/reports/HKSCO_Guidelines.pdf, accessed 28 May 2015 [1].

9 Air Transport Licensing Authority, Air Transport Licensing Authority (ATLA) Public Inquiry with regard to the application for licence by Jetstar Hong Kong Airways Limited, www.thb.gov.hk/eng/boards/transport/air/Summary%20of%20decision%20(Eng)%2025062015.pdf, assessed 28 May 2017.

10 CAD, ‘Air Operator's Certificates Part 1 Operation of Aircrafts', www.cad.gov.hk/english/reports/CAD360_part1.pdf, assessed 30 May 2017.

11 Ibid. 10.

12 ICAO, ‘ICAO Doc 9998 (ICAO Policy on Assistance to Aircraft Accident Victims and their Families)', www.kenyoninternational.com/pdf/family_references/DOC9998_en.pdf, assessed 28 May 2017.

13 Boeing Capital, ‘Current Market Outlook 2016-2035', www.boeing.com/resources/boeingdotcom/commercial/about-our-market/assets/downloads/cmo_print_2016_final_updated.pdf, assessed 28 May 2017.

14 LC Paper No. CB(4)410/16-17(07), ‘The 2017 Policy Address and Policy Agenda Policy Initiatives of the Transport Branch of the Transport and Housing Bureau', www.legco.gov.hk/yr16-17/english/panels/edev/papers/edev20170123cb4-410-7-e.pdf, assessed 30 May 2017.

15 LC Paper No. CB(4)711/16-17(03), ‘Establishing an Independent Air Accident Investigation Authority and Amendments to the Hong Kong Civil Aviation (Investigation of Accidents) Regulations (Cap.448B), www.legco.gov.hk/yr16-17/english/panels/edev/papers/edev20170123cb4-711-3-e.pdf, assessed 30 May 2017.

16 CAD, ‘CAD Annual Report 2015/ 2016', www.cad.gov.hk/reports/an2015-2016/15-16-full.pdf, assessed 28 May 2017.

17 Swire Pacific, ‘Cathay Pacific Cargo Terminal Officially Unveiled at Opening Ceremony', www.swirepacific.com/en/media/presseach.php?f=p140217.htm', assessed 28 May 2017.

18 HKIA, ‘The newsletter of Hong Kong International Airport Issue 4, 2011', www.hongkongairport.com/gb/pdf/media/publication/hkia-news/hkiaNews4_2011.pdf, assessed 28 May 2017.

20 HKTDC Research, ‘Air Transport and Express Cargo Industry in Hong Kong', http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Air-Transport-and-Express-Cargo-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X0018JT.htm, accessed 28 May 2017.