Traffic Rights for Foreign Investor

Hi guys,

Two questions.

1, If I operate a holding in Hong Kong, and then set up a subsidiary in South Korea, and will the subsidiary have domestic traffic rights in South Korea?

2, If my Hong Kong holding purchase more than 50% share of a South Korean enterprise, will that enterprise lose domestic traffic rights in South Korea?

Many thanks!

1) NO you will not have rights

2) YES you will lose rights

1) NO you will not have rights

2) YES you will lose rights

How about the international traffic rights? Such as flight from South Korea to another countries?

And, here is an example that a subsidiary of an American holding running in New Zealand does have NZ domestic traffic rights, BUT WHY?

Because NZ is investment open country

You will not have the international traffic right in South Korea. South Korea is not an open investment country. The only way for you to open an airline in South Korea is when the majority shares are hold by Korean companies, you are the largest shareholder of the company.

AS is simple, no special traffic rights, only some open sky agreements between several countries. 

So how do I operate a thru city connection in Asia if I’m a US Held Company. Say I want to fly SFO-NRT-SIN, when I put the flight into the scheduling it shows a big “X” for the NRT-SIN portion. But in real life a US airline is able to operate such flights. How can I make this work?

You will be able to operate that flight, but only with passengers on board arriving from the USA. You will not be able to take on passengers on board in NRT to travel to SIN.

Because NZ is investment open country

NZ is not on every server open for investments. This is only valid for Kaitak, Idlewild and Devau!

On the other server we have the Oceanian Open Skies Treaty .

So how do I operate a thru city connection in Asia if I'm a US Held Company. Say I want to fly SFO-NRT-SIN, when I put the flight into the scheduling it shows a big "X" for the NRT-SIN portion. But in real life a US airline is able to operate such flights. How can I make this work?

This only works with cargo or  with a via-flight, but there are no passengers joining the flight in NRT towards SIN.

In the real life, United does have the traffic right to take passengers to Singapore in Japan. I believe it got that traffic right from Continental (or maybe itself). It's kind of special traffic rights i was talking about. You can see Delta uses this kind of traffic rights even more in Asia. But you don't  have these in AS. In AS, all the airlines is like American Airline in Japanese market, you can only take passengers from/to U.S. You can only have via passengers in Japan from/to U.S.

NZ is not on every server open for investments. This is only valid for Kaitak, Idlewild and Devau!

On the other server we have the Oceanian Open Skies Treaty .

And Fornebu

an the mentioned agreement is in place on all servers regardless whether NZ is investment open or not

In the real life, United does have the traffic right to take passengers to Singapore in Japan. I believe it got that traffic right from Continental (or maybe itself). It's kind of special traffic rights i was talking about. You can see Delta uses this kind of traffic rights even more in Asia. But you don't  have these in AS. In AS, all the airlines is like American Airline in Japanese market, you can only take passengers from/to U.S. You can only have via passengers in Japan from/to U.S.

 

I agree we should be able to have these options, even if you have to pay some way for these like have to deposit $20M USD. I believe if my United Trivia is correct they got their 5th freedom rights when they purchased Pan Am’s Pacific Routes. The same for Delta when they merged with Northwest Airlines.

 

This only works with cargo or  with a via-flight, but there are no passengers joining the flight in NRT towards SIN.

Let’s put the people in cargo boxes and call them cargo. I mean I already fly Yankees Fans (US Baseball) for free on the wings of my planes.

@ HSXAGENT - it is technically not (yet) possible to simulate all 5th and higher freedom agreements that are in place among various countries in AS. You cannot even use EU - US open skies agreement but for your Headquarters country originated flights.

It's not a matter of whether a deposit would be required or not, it's the matter of technical limitations. ORS (not the scoring, but demand calculation) is the highest resource-utilization component of AS.

Here is some fascinating read about ORS http://community.airlinesim.aero/topic/3298-a-rewrite-for-the-ors-ein-rewrite-fur-das-ors/

 

I agree we should be able to have these options, even if you have to pay some way for these like have to deposit $20M USD. I believe if my United Trivia is correct they got their 5th freedom rights when they purchased Pan Am’s Pacific Routes. The same for Delta when they merged with Northwest Airlines.

 

 i'm not saying that we should have special traffic, though it's nice to have one. If this kind of traffic rights is available in AS, more rules need to be applied because large airline may make troubles in the other countries market.

Well here’s to hoping to have it in 5 years or when they double their server’s processors. Great read by the way thanks.