ABSTRACT
There has been increased interest in the air cargo industry in Hong Kong in recent years. The Asian financial crisis and China's increasingly direct engagement with the world have been forcing a re-structuring of the Hong Kong economy. Sectors such as real estate are in decline whereas sectors such as air cargo logistics fit in with existing strengths and may hold the potential for further development. Its excellent location, historical affiliation with the UK, and the limited direct contact linking China and the rest of the world have until recently enabled Hong Kong to develop into a key international aviation hub, both for passengers and cargo. Over the past decade, cargo throughput grew at approximately twice the rate of passenger throughput. Hong Kong assumed a new trade pattern from the late 1970s when China embarked on economic reforms and an 'open door' policy.
