Virgin Atlantic push awaits HK clearance

[Wirraway]

Wed "Sydney Morning Herald"

Virgin Atlantic push awaits HK clearance
May 5, 2004

Virgin Atlantic's long-awaited arrival in Sydney is being held up by red tape in Hong Kong, which should please its rivals British Airways, Qantas Airways and Cathay Pacific Airways.

Virgin Atlantic's plans to start flying between London and Sydney via Hong Kong by mid-year had been dashed due to "technical issues" relating to a deal between UK and HK officials, said Mackenzie Grant, Virgin Atlantic's head of Asian operations.

"We still have not had the last element of approval from the HK Government," he said. "Even though the deal was agreed last November, they haven't released it to us as yet, because they're waiting on some clarification from the European Union on the designation clause."

The European Union is in the process of approving new legislation - the designation clause, which states any rights given to a UK carrier by a non-EU government also have to be given to any airline in the EU.

"It's quite a complex issue, but obviously one that's giving concern to some governments and not to others," Mr Grant said. "The overriding position we take is that if the agreement is pro-competition and pro-consumer, then it cannot be anything but good for aviation and for the consumer."

Virgin Atlantic plans to operate a daily service between London and Sydney using 12 Airbus A340-600 aircraft.

Mr Grant is confident the deal will be approved, but concedes the delay is frustrating after waiting for so long to start services. The HK Government had not given any indication of when it was likely to hand down its final ruling, he said.

Dow Jones

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[proplever]

Dickie's gonna look good in that skinny black dress! Wonder if he will still have that sh1t eating grin on his dial?

[Capt Claret]

When does the service have to start for Mr Dixon of Qantas to lose the bet and play FA to LHR?

[fire wall]

Wirraway, this is a good example of selective reporting not necessarily giving the correct picture.
In November 03 the HK and UK governments sat down and brokered a deal/exchange of rights between Cathay and Virgin Atlantic. In exchange for the HK govt allowing Virgin Atlantic to fly HK-Australia the UK govt was to allow CX to fly LHR to JFK.
Unfortunately an arguement has now ensued between the UK govt and the EU.....the EU claiming that the UK authorities have no right to negotiate airway rights as it is the providence of the EU ........ and so the whole agreement has stalled as the EU says it will now ratify the agreement (when it is none of their business) only when the HK govt allows another EU airline the same concessions.

[Johhny Utah]

Here's a reprint from a Pprune thread from the time the challenge was issued:

Virgin Atlantic to Aus by mid 2004 (http://www.pprune.org/forums/showthread.php?s=&threadid=110304&highlight=branson+challenge+dixon)
Finally, Richard called on Geoff Dixon, Chief Executive of Qantas to fulfil the terms of the challenge laid down on 24 July of this year (2003).
It looks as though Branson might have opened his mouth a little too early...?:rolleyes: I'm guessing that there are probably quite a few people out there who are keen to see him have to carry out his side of the bet :ok: However, I don't think that getting dressed up & carrying on will serve as anything other than more publicity for him - and that's the last thing we all need! :ooh:

[frangatang]

How will the bearded one find yhe time to dress up in an ethnic
platelayers uniform when he might very well be flying solo around the world in that voyager,without a ppl l might add!

[SnapOff]

Re firewall's comments; I would have thought another EU airline has now gained access to the route in that BA should be able to sell tickets for LHR-HKG-SYD via its tie up with QF which has said it will start on that very same route in early '05. Or do they mean another "European" airline. Seems to me that the supposedly free market of Europe is only free some of the time. In the mean time other markets have got their act together and will now have a major advantage while the bureaucrats sort their legal minefield.

[Animalclub]

SnapOff

BA can sell tickets LHR HKG SYD. They've been doing it for years.