What capability do airlines incorporated in Hong Kong have regarding their operations prior to the establishment of the region?

Airlines incorporated in Hong Kong possess the capability to operate and engage in aviation activities as an essential function vital to their business model. The region's strategic geographic position and its status as a global financial and trade hub enable these airlines to maintain extensive networks. This operational capability includes offering passenger and cargo services, scheduling flights, and managing logistical aspects of air travel.

While the ability to operate is fundamental, other options provided have different implications. Airlines can negotiate air service agreements, which involves discussions with foreign entities regarding the terms of flight operations, but this is not an inherent operational capability in itself. Imposing tariffs relates to pricing strategies that may not directly align with what is within the purview of an airline, as tariffs are typically set by regulatory authorities rather than individual companies. Ceasing operations is a decision that may arise under certain circumstances, but it does not represent a proactive capability or a routine operational function.

In summary, the essence of an airline’s operations inherently includes the capacity to operate flights, which is foundational to their function and business viability, particularly within the unique context of Hong Kong's aviation sector.