Saving Competition in Hong Kong’s Aviation Market

Abstract

Hong Kong is a regional and international aviation hub and aviation is the lifeblood of the Hong Kong economy, providing connectivity for the flow of people and goods between the city and the rest of the world. Despite its significance to Hong Kong’s economy, Hong Kong’s aviation market has a number of ambiguities from a competition perspective. As one of the most regulated industries, aviation intersects with competition law, and their intersection requires a systematic approach. There are ex ante regulatory powers available to aviation regulators and ex post competition law powers in many areas of the aviation market. Without coordination between the Hong Kong Competition Commission (HKCC) and aviation agencies in Hong Kong, overlapping areas will be regulated haphazardly. Since Hong Kong’s current aviation regulations do not consider competition review, the overlapping areas will be subject to the HKCC’s ex post enforcement power. The current system creates confusion and uncertainty for airlines, who would assume that their business activities have been approved by aviation regulators. This article identifies competition law issues in Hong Kong’s aviation market and makes recommendations on how to address them. Hong Kong, Aviation Market, Aviation Law, Competition Law, Hong Kong Competition Commission