US Warns Of HK Flight Curbs Over Quarantine Rules

The US has warned it could limit flights from airlines in Hong Kong, saying the SAR's quarantine requirements for air crew are disproportionately affecting US-based airlines.

According to a docket issued by the Department of Transportation (DOT) on Tuesday, the quarantine rules also affect the ability of US airlines to compete equally with Cathay Pacific, and impact the operations of US cargo carrier FedEx.

In January, the SAR issued new rules requiring locally based air crews to observe a quarantine period when flying into Hong Kong from international locations, but exempted flights between Hong Kong and Anchorage in Alaska.

The DOT noted that while FedEx’s Hong Kong-based crews serve only intra-Asia routings – and therefore do not benefit from the Anchorage exception – Hong Kong carrier Cathay Pacific operates a large transshipment operation in Anchorage.

"This carve out effectively provides Cathay Pacific with the ability to continue those operations without impact from the new crew quarantine requirements," the DOT said.

The document goes on to say that Hong Kong's quarantine restrictions "disproportionately impact US carriers to the exclusive benefit of Hong Kong carriers" and also "impair the operating rights of US carriers."

The DOT has given Cathay seven days to file the schedule of its cargo and passenger flights to the US, saying the authorities will determine whether the flights are legal and "in the public interest".

In a statement to RTHK, Cathay Pacific said it has received the order from the department, and that it will “continue to comply with all the applicable aviation regulations in both Hong Kong and the territories to which we fly.”

It also said it had been hit hard by the new crew quarantine measures, and passenger capacity is down by around 60 percent as a result, while cargo capacity has declined by around a quarter from January.

The airline said it is now losing around HK$300-HK$400 million a month.

Last week, Hong Kong's flag carrier reported a record HK$21.6 billion loss for 2020, a year that chairman Patrick Healy said had been the "most challenging" in the airline's seven-decade history.

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