China, S'pore sign air services deal

China, S'pore sign air services deal

SINGAPORE (AFP): China and Singapore signed an aviation agreement yesterday allowing for an expansion of air services between the two countries to boost trade and tourism.

The agreement was signed in the presence of visiting Chinese Premier Li Peng and his Singapore counterpart Goh Chok Tong.

Officials said the accord would allow for a 43-percent increase in passenger service capacity for the airlines of both countries by 2000.

"The increase in capacity will be mutually beneficial," said Singapore Communications Minister Mah Bow Tan.

"It will pave the way for further growth of trade, tourism and investments in both countries as Singapore and Chinese carriers will be able to respond more readily to changes in market demand," he added.

Five Chinese carriers -- Air China, China Eastern Airlines, China Southern Airlines, China Yunnan Airlines and China Southwest Airlines -- currently operate 23 flights a week to Singapore.

Singapore Airlines and its subsidiary SilkAir operate 26 passenger services weekly to six Chinese cities.

Passenger and airfreight movements between the two countries have grown at a compounded rate of 38 percent and 50 percent respectively over the past five years.

Passenger movement for the first four months of 1997 grew 28 percent from the same period last year to 210,000 passengers. Airfreight movements for the same period expanded by 25 percent to 8,000 tons.