Fri "The Australian"
Virgin close to kangaroo dream
By Glenda Korporaal in Hong Kong
November 28, 2003
Richard Branson's Virgin Atlantic appeared to be a step closer to its goal of flying to Australia last night as UK-Hong Kong air talks extended into their third day yesterday.
Insiders said that there had been progress during the talks, which Virgin Atlantic hopes will allow it to make daily flights to Australia via Hong Kong. Under the deal, Cathay Pacific would get transatlantic rights to fly from Heathrow to the US while Virgin would be allowed to fly to Australia from Hong Kong, which it currently services with daily flights.
Approval from the Australian side would then be given as there is plenty of capacity on the Australia-UK route under existing air services agreements.
If Hong Kong and UK officials can reach agreement, Virgin is expected to launch its services to Australia by mid-2004.
British Airways has opposed the move, unwilling to give Virgin access to the lucrative route from London to Australia.
BMI (formerly British Midland) is also opposed to Cathay's plans to fly across the Atlantic.
However, the key issue holding up an agreement appeared to be the question of whether the British Government had the authority to negotiate an air services deal with Hong Kong.
While British officials have argued that they did, HK officials were concerned about a decision in the European Court of Justice last year which said some bilateral deals signed by EU member states were illegal under European Union law.
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