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.