Jun 4, 2001

Australian carrier Qantas hopes it may be possible to resume flights to London via Hong
Kong later this year if negotiations between Canberra and Hong Kong are successful.

The issue was discussed last Friday by Australian Foreign Minister Alexander Downer in talks
about Australian airlines being extended fifth freedom rights to pick up passengers from
Hong Kong to fly to other destinations.

Qantas flies to London through Singapore and Bangkok as a result of the Hong Kong
Government's protectionist attitude towards Cathay Pacific.

"We want to see the development of an air services agreement with Hong Kong," Mr Downer
told The Australian newspaper at the weekend.

"In particular [we would like to have] fifth freedom rights for Australian airlines - a capacity to
come in here, pick up passengers and fly on to other destinations which they can't do at the
moment. We would like to see Hong Kong make that concession to allow Australian airlines -
obviously we are talking particularly Qantas - being able to do that," Mr. Downer told the
newspaper.

Air New Zealand last month was given the go-ahead to fly to London through Hong Kong
under a new air services agreement with the New Zealand Government.

The airline is expected to begin a service between Hong Kong and Heathrow by the end of
this year.

At the moment only Cathay, British Airways and Virgin Atlantic fly directly between London
and Hong Kong.

[This message has been edited by nlp (edited 06-04-2001).]