UPS hoping for U.S.-HK air breakthrough
A top UPS executive expressed optimism that negotiations between the United States and Hong Kong that begin today will produce a long-sought aviation accord.
“This is one time that our hopes and expectations are pretty well running parallel. There have been several rounds of negotiations. Both sides say now is the time for a deal,” said Tom Weidemeyer, president of UPS Airlines.
“We think Hong Kong recognizes that to remain competitive as an air cargo hub there have to be more services for shippers,” said Weidemeyer, who is also chief operating officer of United Parcel Service.
The U.S. wants to give its carriers better access to foreign markets, and has been pursuing so-called open-skies agreements around the world.
Hong Kong officials have rejected open skies, but say they believe in “progressive liberalization.” U.S. negotiators apparently are ready to accept an accord that would be something less than complete freedom for carriers. The two sides were said to be close to an agreement during the most recent round of negotiations in June. Today’s talks are expected to continue through the rest of the week.
Weidemeyer said he hoped that two deals announced earlier this month by rival DHL Worldwide – one for an air cargo hub at Hong Kong International Airport and a link-up with Cathay Pacific Airways for a regional air-cargo joint venture in Asia – would not affect the talks.
Negotiations continued late into Wednesday evening local time, and included a number of side meetings, a UPS spokesman said.
A spokesman for the U.S. Department of Transportation also had no information on the talks, but he noted that Transportation Secretary Norman Mineta will be speaking at next week’s Asia Pacific Economic Cooperation forum in Los Cabos, Mexico. An aviation deal with Hong Kong would bolster a call by Mineta for further liberalization in the region.
Separately, Weidemeyer said UPS will continue to run six extra flights a week from Asia to the U.S. “for as long as our customers require them.”
UPS added the flights about 10 days ago to handle a growing backlog of shipments at Asian airports resulting from the shutdown of U.S. West Coast ports. Weidemeyer said it’s difficult to determine how much of the additional demand is due to the port situation or normal peak season traffic. He did, however, say that most of the extra traffic is standard air cargo rather than higher-yielding express shipments that UPS delivers door-to-door.
