What authority is granted to the Government of the Hong Kong Special Administrative Region concerning airlines?

The correct answer highlights the authority of the Government of the Hong Kong Special Administrative Region (HKSAR) to issue licences to airlines, which is an essential aspect of its regulatory framework in civil aviation. This power is crucial for maintaining safety and operational standards within the aviation sector. By issuing licences, the HKSAR government ensures that airlines comply with established criteria, which typically include safety standards, financial stability, and operational capabilities.

Issuing licences serves as a mechanism for the government to exercise oversight over the aviation industry, ensuring that only qualified operators can provide air services. This authority aligns with the broader regulatory role that governments play in sectors related to public safety and economic operation, and it reflects a significant responsibility of the HKSAR government in managing its transportation framework.

While establishing regulations, imposing taxes, and regulating airspace are indeed functions related to aviation, the specific authority to issue licences is particularly important for ensuring that the entities operating in this industry meet the necessary requirements for operation, thereby protecting passengers and maintaining standards within the sector.