Hong Kong Banning Flights at Fastest Rate Since January
(Bloomberg) -- Less than a week after Hong Kong rolled back some of the world's strictest inbound travel curbs, at least six airlines have had routes banned, creating havoc for travelers and further undermining the city's role as a financial hub.
Singapore Airlines Ltd., Emirates, Cathay Pacific Airways Ltd., Qatar Airways QCSC, Korean Air Lines Co. and Malaysia Airlines were slapped with week-long bans this month after breaching Hong Kong's so-called circuit-breaker mechanism. A stoppage can be meted out if three or more Covid-19 cases are found on the same flight, or if there's one confirmed infection and another non-compliant passenger.
The six airlines' bans occurred within four days, the most rapid flurry since 11 suspensions were levied over four days in January. The current tally accounts for 11% of all airline route suspensions issued so far this year.
The bans come after Hong Kong eased a raft of travel measures on April 1 in response to mounting frustration over the city's effective closure for most of the past two years due to pandemic restrictions. Authorities had lifted an outright ban on inbound flights from nine countries, including the U.S., the U.K. and Australia, and reduced quarantine for inbound travelers to one week.
Infection rates are dropping as the city exits its largest outbreak since the pandemic began. There were a total of 2,777 new cases reported on Wednesday, the lowest level since Feb. 14, and 84 deaths. Seven of the infections were imported, health officials said during the daily briefing.
Read more: Hong Kong's Quarantine Shift Fails to Satisfy Many Businesses
The business community has warned that the circuit-breaker mechanism was a major risk for anyone seeking to fly to Hong Kong, given travelers can't be certain their flight will go ahead. The measure also contrasts with the majority of the world, which is opening up and resuming international travel. Hong Kong requires every passenger to have a negative PCR test result before boarding their flight and currently only allows residents to enter the city.
Suspending airlines for carrying passengers who test positive on arrival even though they were negative before “is a case of shooting the messenger as testing is done by health experts,” said Subhas Menon, the director general of the Association of Asia Pacific Airlines which counts local carrier Cathay Pacific as a member. “Quarantine of any form and repeat PCR tests are obsolete for fully vaccinated travelers nowadays, as well as travel deterrents.”
Read more: Hong Kong Considering Easing Covid Rules for Foreign Air Crew
Emirates Hit Hardest
Emirates appears to have been hit hardest. Its Dubai-Bangkok-Hong Kong route has been suspended six times this year, for a total of 77 days.
Of the 76 departing passenger flights planned for Tuesday, just 15 went ahead, and 74% of inbound flights were canceled, according to Webb-Site.com, founded by investor David Webb. The site scrapes and compiles figures from Airport Authority Hong Kong. Already 56% of inbound flights for Thursday have been scrapped.
“Despite the shortening of flight bans in general we are still looking at bans,” said Frederik Gollob, chairman of the European Chamber of Commerce in Hong Kong. “This continues to cause uncertainty for passengers as well as significant operational risks for airlines.”
Traveler numbers are set to rise as more Hong Kong residents seek to return with the outbreak abating. In the first five days of April, 6,161 people entered Hong Kong through the airport, compared with 8,923 arriving in the whole of March. A spokesperson for the Airport Authority referred to the arrival and departures page on their website.
Read more: Quarantine Eased for Hong Kong Flight Crew in Boost for Cathay
A coalition of 11 foreign airlines last month lobbied Hong Kong's leader Carrie Lam to scrap pre-flight and on-arrival Covid-19 tests for aircrew. Lam last week told consulates and foreign chambers that the city is considering a significant change to ease rules as expressed for in the letter.
While business groups are frustrated with the uncertainty caused by the flight suspensions, changing the policy will depend on what happens after a planned easing of social-distancing restrictions later this month, according to Ivan Hung, head of the infectious diseases division at the University of Hong Kong's medical school.
“I believe this is a temporary measure,” he said. “Despite the number of new Covid-19 cases dropping significantly to 3,000 cases a day, it is still a relatively large number. The situation after the infection-control measures relaxation” will decide the flight restriction policy, he said.
©2022 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.