Company name	The Boeing Company
Company logo
Company type	Public company
Traded as	Dow Jones Industrial Average ComponentS&P; 500 Component
Foundation	Seattle, Washington, U.S. (1916)
Location	Chicago, Illinois, U.S.
Area served	Worldwide
Key people	W. James McNerney, Jr.(Chairman and CEO)
Industry	Aerospace and Defense
Products	Commercial airlinersMilitary aircraft Munitions Space systems Computer services
Revenue	US$ 64.306 billion (2010)
Operating income	US$ 5.023 billion (2010)
Net income	US$ 3.307 billion (2010)
Assets	US$ 68.565 billion (2010)
Equity	US$ 2.776 billion (2010)
Num employees	164,495 (Apr. 28, 2011)
Divisions	Boeing Commercial Airplanes Boeing Defense, Space & Security Others
Subsid	Aviall, Inc. CDG Jeppesen Boeing Aircraft Holding Company Boeing Australia Boeing Canada Boeing Defence UK Boeing Store
Homepage	Boeing.com
Intl	yes }}

The Boeing Company ( ) is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001. Boeing is made up of multiple business units, which are Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group.

Boeing is among the largest global aircraft manufacturers by revenue, orders and deliveries, and the third largest aerospace and defense contractor in the world based on defense-related revenue. Boeing is the largest exporter by value in the United States. Its stock is a component of the Dow Jones Industrial Average.

History

Before 1930s

In March 1910 William E. Boeing bought Heath's shipyard in Seattle, Washington, on the Duwamish River, which later became his first airplane factory. Boeing was incorporated in Seattle by William Boeing, on July 15, 1916, as "Pacific Aero Products Co.". Boeing, who studied at Yale University, worked initially in the timber industry, where he became wealthy and acquired knowledge about wooden structures. This knowledge would prove invaluable in his subsequent design and assembly of airplanes. The company stayed in Seattle to take advantage of the local supply of Spruce wood.

William Boeing founded his company a few months after the June 15 maiden flight of one of the two "B&W;" seaplanes built with the assistance of George Conrad Westervelt, a U.S. Navy engineer. Boeing and Westervelt decided to build the B&W; seaplane after having flown in a Curtiss seaplane and realizing they could build a better airplane. Many of Boeing's early planes were seaplanes. The first Boeing airplane, the B&W; Model 1 float plane, was assembled in a lakeside hangar located on the northeast shore of Seattle's Lake Union.

On May 9, 1917, the company became the "Boeing Airplane Company". In late 1917, the US entered World War I and Boeing knew that the US Navy needed seaplanes for training. So Boeing shipped two new Model Cs to Pensacola, Florida where the planes were flown for the Navy. The Navy liked the Model C so much that they ordered fifty more. The Boeing Company moved its operations to a larger former shipbuilding facility known as Boeing Plant 1, located on the Lower Duwamish Waterway.

When World War I ended in 1918, a large surplus of cheap, used military planes flooded the commercial airplane market, and this prevented aircraft companies like Boeing from selling any new airplanes. Because of this, many airplane companies went out of business, but other companies, including Boeing, started selling other products. Boeing built dressers, counters, and furniture, along with flat-bottom boats called Sea Sleds.

In 1919 the Boeing B-1 made its first flight. It was a flying boat that accommodated one pilot and two passengers and mail. Over the course of eight years, it made international airmail flights from Seattle, Washington to Victoria, British Columbia. On May 24, 1920, the Boeing Model 8 made its first flight. It was the first plane to fly over Mount Rainier.

In 1923, Boeing began a competition against Curtiss for a contract to develop a pursuit fighter for the U.S. Army Air Service. Although Curtiss finished its design first and was awarded the contract, Boeing continued to develop its PW-9 fighter. That plane, along with the Boeing P-12/ F4B fighter, made Boeing a leading manufacturer of fighters over the course of the next decade.

In 1925, Boeing built its Model 40 mail plane for the US government to use on airmail routes. In 1927, an improved version of this plane was built, the Model 40A. The 40A won the U.S. Post Office's contract to deliver mail between San Francisco and Chicago. The 40A also had a passenger cabin that accommodated two passengers.

That same year, Boeing created an airline named Boeing Air Transport, which merged a year later with Pacific Air Transport and the Boeing Airplane Company. The first airmail flight for the airline was on July 1, 1927. The company changed its name to United Aircraft and Transport Corporation in 1929 and acquired Pratt & Whitney, Hamilton Standard Propeller Company, and Chance Vought. United Aircraft then purchased National Air Transport in 1930.

On July 27, 1929, the 12-passenger Boeing 80 biplane made its first flight. With three engines, it was Boeing's first plane built with the sole intention of being a passenger transport. An upgraded version, the 80A, carrying eighteen passengers, made its first flight in September 1929.

1930s and 1940s

In 1930, the Monomail, a low-wing monoplane that carried mail, was built. Built entirely out of metal, it was very fast and aerodynamic, and it also had retractable landing gear. In fact, its design was so revolutionary that the engines and propellers of the time could not handle the plane. By the time controllable pitch propellers were developed, Boeing was building its Model 247 airliner. Two Monomails were built. The second one, the Model 221, had a 6-passenger cabin.

In 1933 the revolutionary Boeing 247 was introduced, the first truly modern airliner. The 247 was an all-metal low-wing monoplane that was much faster, safer, and easier to fly than other passenger aircraft. For example, it was the first twin engine passenger aircraft that could fly on one engine. In an era of unreliable engines, this vastly improved flight safety. Boeing built the first sixty aircraft exclusively for its own airline operations. This badly hurt competing airlines, and was typical of the anti-competitive corporate behavior that the US government sought to prohibit at the time.

The Air Mail Act of 1934 prohibited airlines and manufacturers from being under the same corporate umbrella, so the company split into three smaller companies – Boeing Airplane Company, United Airlines, and United Aircraft Corporation, the precursor to United Technologies. As a result, William Boeing sold off his shares and left Boeing. Claire Egtvedt, who had become Boeing's president in 1933, became the chairman as well. He believed the company's future was in building bigger planes. Work began in 1936 on Boeing Plant 2 to accommodate the production of larger modern aircraft.

Shortly after, an agreement with Pan American World Airways (Pan Am) was reached, to develop and build a commercial flying boat able to carry passengers on transoceanic routes. The first flight of the Boeing 314 Clipper was in June 1938. It was the largest civil aircraft of its time, with a capacity of 90 passengers on day flights, and of 40 passengers on night flights. One year later, the first regular passenger service from the US to the UK was inaugurated. Subsequently other routes were opened, so that soon Pan Am flew with the Boeing 314 to destinations all over the world.

In 1938, Boeing completed work on its Model 307 ''Stratoliner''. This was the world’s first pressurized-cabin transport aircraft, and it was capable of cruising at an altitude of – above most weather disturbances.

During World War II, Boeing built a large number of B-17 and B-29 bombers. Many of the workers were women whose husbands had gone to war. In the beginning of March 1944, production had been scaled up in such a manner that over 350 planes were built each month. To prevent an attack from the air, the manufacturing plants had been covered with greenery and farmland items. During these years of war the leading aircraft companies of the US cooperated. The Boeing-designed B-17 bomber was assembled also by Lockheed Aircraft Corp. and Douglas Aircraft Co., while the B-29 was assembled also by Bell Aircraft Co. and by Glenn L. Martin Company.

After the war, most orders of bombers were canceled and 70,000 people lost their jobs at Boeing. The company aimed to recover quickly by selling its Stratocruiser (the Model 377), a luxurious four-engine commercial airliner developed from the B-29. However, sales of this model were not as expected and Boeing had to seek other opportunities to overcome the situation. The company successfully sold military derivatives of the Stratocruiser, such as the C-97 adapted for troop transportation and the KC-97 for aerial refueling.

1950s

Boeing developed military jets such as the B-47 Stratojet and B-52 Stratofortress bombers in the late-1940s and into the 1950s. During the early 1950s, Boeing used company funds to develop the 367–80 jet airliner demonstrator that led to the KC-135 Stratotanker and Boeing 707 jetliner.

In the mid-1950s technology had advanced significantly, which gave Boeing the opportunity to develop and manufacture new products. One of the first was the guided short-range missile used to intercept enemy aircraft. By that time the Cold War had become a fact of life, and Boeing used its short-range missile technology to develop and build an intercontinental missile.

In 1958, Boeing began delivery of its 707, the United States' first commercial jet airliner, in response to the British De Havilland Comet, French Sud Aviation Caravelle and Soviet Tupolev Tu-104, which were the world’s first generation of commercial jet aircraft. With the 707, a four-engine, 156-passenger airliner, the US became a leader in commercial jet manufacture. A few years later, Boeing added a second version of this aircraft, the 720, which was slightly faster and had a shorter range.

Boeing was a major producer of small turbine engines during the 1950s and 1960s. The engines represented one of the company's major efforts to expand its product base beyond military aircraft after World War II. Development on the gasoline turbine engine started in 1943 and Boeing's gas turbines were designated models 502, 520, 540, 551 and 553. Boeing built 2,461 engines before production ceased in April 1968. Many applications of the Boeing gas turbine engines were considered to be firsts, including the first turbine-powered helicopter and boat.

1960s

Vertol Aircraft Corporation was acquired by Boeing in 1960, and was reorganized as Boeing's Vertol division. The twin-rotor CH-47 Chinook, produced by Vertol, took its first flight in 1961. This heavy-lift helicopter remains a work-horse vehicle up to the present day. In 1964, Vertol also began production of the CH-46 Sea Knight.

In December 1960, Boeing announced the model 727 jetliner, which went into commercial service about three years later. Different passenger, freight and convertible freighter variants were developed for the 727. The 727 was the first commercial jetliner to reach 1000 sales, and a few years later the 1500 mark was reached.

Boeing won a contract in 1961 to manufacture the S-IC stage of the Saturn V rocket, manufactured at the Michoud Assembly Facility in New Orleans, Louisiana.

In 1967, Boeing introduced another short- and medium-range airliner, the twin-engine 737. It has become since then the best-selling commercial jet aircraft in aviation history. The 737 is still being produced, and continuous improvements are made. Several versions have been developed, mainly to increase seating capacity and range.

The roll-out ceremonies for the first 747–100 took place in 1968, at the massive new factory in Everett, about an hour's drive from Boeing's Seattle home. The aircraft made its first flight a year later. The first commercial flight occurred in 1970. The 747 has an intercontinental range and a larger seating capacity than Boeing's previous aircraft.

Boeing also developed hydrofoils in the 1960s. The screw driven USS ''High Point'' (PCH-1) was an experimental submarine hunter. The patrol hydrofoil USS ''Tucumcari'' (PGH-2) was more successful. Only one was built, but it saw service in Vietnam and Europe before running aground in 1972. Its innovative waterjet and fully submersed flying foils were the model for the later Pegasus class patrol hydrofoils and the model 929 Jetfoil ferries in the 1980s. The Tucumcari and later boats were produced in Renton. While the Navy hydrofoils were withdrawn by the end of the 1980s, the swift and smooth Boeing Jetfoils are still in service in Asia.

1970s

In the beginning of the 1970s, Boeing faced a new crisis. The Apollo program, in which Boeing had participated significantly during the preceding decade, was almost entirely canceled. Once more, Boeing hoped to compensate with sales of its commercial airliners. At that time, however, there was a heavy recession in the airlines industry so that Boeing did not receive any orders for more than a year. Boeing's bet for the future, the new 747, was delayed in production by three months because of problems with its Pratt & Whitney engines. Another problem was that in 1971, the U.S. Congress decided to stop the financial support for the development of the supersonic 2707, Boeing's answer to the British-French Concorde, forcing the company to discontinue the project. The company had to reduce the number of employees from over 80,000 to almost half, only in the Seattle area.

In January 1970, the first 747, a four-engine long-range airliner, flew its first commercial flight. This famous aircraft completely changed the way of flying, with its 450-passenger seating capacity and its upper deck. Boeing has delivered nearly 1,400 747s. The 747 has undergone continuous improvements to keep it technologically up-to-date. Larger versions have also been developed by stretching the upper deck. As of 2010, the 747 is still being produced, with its newest version being the 747-8.

Boeing launched three Jetfoil 929-100 hydrofoils that were acquired in 1975 for service in the Hawaiian Islands. When the service ended in 1979 the three hydrofoils were acquired by Far East Hydrofoil for service between Hong Kong and Macau.

During the 1970s, Boeing also developed the US Standard Light Rail Vehicle which was used in San Francisco, Boston and Morgantown, WV.

1980s

In 1983, the economic situation began to improve. Boeing assembled its 1,000th 737 passenger airliner. During the following years, commercial aircraft and their military versions became the basic equipment of airlines and air forces. As passenger air traffic increased, competition was harder, mainly from Airbus, a European newcomer in commercial airliner manufacturing. Boeing had to offer new aircraft, and developed the single-aisle 757, the larger, twin-aisle 767, and upgraded versions of the 737. An important project of these years was the Space Shuttle, to which Boeing contributed with its experience in space rockets acquired during the Apollo era. Boeing participated also with other products in the space program, and was the first contractor for the International Space Station program.

During the decade several military projects went into production, including Boeing support of the stealth B-2 bomber. As part of an industry team led by Northrop, Boeing built the outboard portion of the B-2 stealth bomber wing, the aft center fuselage section, landing gears, fuel system and weapons delivery system. At its peak in 1991, the B-2 was the largest military program at Boeing, employing about 10,000 people. The same year, the National Aeronautic Association of the USA awarded the B-2 design team the Collier Trophy for the greatest achievement in aerospace in America. The first B-2 rolled out of the bomber's final assembly facility in Palmdale, Calif., in November 1988 and it flew for the first time on July 17, 1989.

The Avenger air defense system and a new generation of short-range missiles also went into production. During these years, Boeing was very active in upgrading existing military equipment and developing new ones. Boeing also contributed to wind power development with the experimental MOD-2 Wind Turbines for NASA and US DOE, and the MOD-5B for Hawaii.

1990s

Boeing was one of seven competing companies' that bid for the Advanced Tactical Fighter. Boeing agreed to team with General Dynamics and Lockheed, so that all three companies would participate in the development if one of the three companies design was selected. The Lockheed design was eventually selected and developed into the F-22 Raptor.

In April 1994, Boeing introduced the most modern commercial jet aircraft at the time, the twin-engine 777, with a seating capacity of approximately 300 to 370 passengers in a typical three-class layout, in between the 767 and the 747. The longest range twin-engined aircraft in the world, the 777 was the first Boeing airliner to feature a "fly-by-wire" system and was conceived partly in response to the inroads being made by the European Airbus into Boeing’s traditional market. This aircraft reached an important milestone by being the first airliner to be designed entirely by using CAD techniques. The 777 was also the first airplane to be certified for 180 minute ETOPS at entry into service by the FAA. Also in the mid-1990s, the company developed the revamped version of the 737, known as the 737 "Next-Generation", or 737NG. It has since become the fastest-selling version of the 737 in history, and on April 20, 2006 sales passed those of the "Classic 737", with a follow-up order for 79 aircraft from Southwest Airlines.

In 1995 Boeing announced that the headquarters complex on East Marginal Way South would be demolished instead of being upgraded to match new seismic standards. Boeing scheduled demolition of the facility in 1996 and moved the headquarters to an adjacent building. In 1997 Boeing's headquarter was located on East Marginal Way South, by King County Airport, in Seattle.

In 1996, Boeing acquired Rockwell’s aerospace and defense units. The Rockwell business units became a subsidiary of Boeing, named Boeing North American, Inc. In August 1997, Boeing merged with McDonnell Douglas in a US$13 billion stock swap under the name ''The Boeing Company''. However this name had actually been Boeing's official name previously adapted on May 21, 1961. Following the merger, the McDonnell Douglas MD-95 was renamed the Boeing 717, and the production of the MD-11 was limited to the freighter version. Boeing introduced a new corporate identity with completion of the merger, incorporating the Boeing logo type and a stylized version of the McDonnell Douglas symbol, which was derived from the Douglas Aircraft logo from the 1970s.

2000s

In September 2001, Boeing moved its corporate headquarters from Seattle to Chicago. Chicago, Dallas and Denver – vying to become the new home of the world’s largest aerospace concern – all had offered packages of multimillion-dollar tax breaks. Its offices are located in the Fulton River District, Chicago just outside the Loop, Chicago.

On October 10, 2001, Boeing lost to its rival Lockheed Martin in the fierce competition for the multi-billion dollar Joint Strike Fighter contract. Boeing’s entry, the X-32, was rejected in favor of Lockheed’s X-35 entrant. Boeing continues to serve as the prime contractor on the International Space Station and has built several of the major components.

After several decades of success, Boeing lost ground to Airbus and subsequently lost its lead in the airliner market in 2003. Multiple Boeing projects were pursued and then canceled, notably the Sonic Cruiser, a proposed jetliner that would travel just under the speed of sound, cutting intercontinental travel times by as much as 20 percent. It was launched in 2001 along with a new advertising campaign to promote the company's new motto, "Forever New Frontiers", and to rehabilitate its image. However, the plane's fate was sealed by the changes in the commercial aviation market following the September 11 attacks and the subsequent weak economy and increase in fuel prices.

Subsequently, Boeing streamlined production and turned its attention to a new model, the Boeing 787 Dreamliner, using much of the technology developed for the Sonic Cruiser, but in a more conventional aircraft designed for maximum efficiency. The company also launched new variants of its successful 737 and 777 models. The 787 proved to be highly popular choice with airlines, and won a record number of pre-launch orders at a time in which Airbus was seen to be struggling with delays and cost overruns in producing its A380 superjumbo; at the same time, several airlines threatened to switch their A380 orders to Boeing's modernized version of the 747, the 747-8. Airbus's response to the 787, the Airbus A350, received a lukewarm response at first when it was announced as an improved version of the A330, and only gained significant orders when Airbus promised an entirely new design. The 787 has encountered delays in coming to production, with the first flight not occurring until late 2009, more than two years late. Production will be increased to 10 Boeing 787s per month by 2013.

In 2004, Boeing ended production of the 757 after 1,050 were produced. More advanced, stretched versions of the 737 were beginning to compete against the 757, and the new 787-3 filled much of the top end of the 757 market. Also that year, Boeing announced that the 717, the last civil aircraft to be designed by McDonnell Douglas, would cease production in 2006. The 767 was in danger of cancellation as well, with the 787 replacing it, but orders for the freighter version extended the program.

In May 2005, Boeing announced its intent to form a joint venture, United Launch Alliance with its competitor Lockheed Martin. The new venture will be the largest provider of rocket launch services to the US government. The joint venture gained regulatory approval and completed the formation on December 1, 2006.

On August 2, 2005, Boeing sold its Rocketdyne rocket engine division to Pratt & Whitney. On May 1, 2006, Boeing announced that it had reached a definitive agreement to purchase Dallas, Texas-based Aviall, Inc. for $1.7 billion and retain $350 million in debt. Aviall, Inc. and its subsidiaries, Aviall Services, Inc. and ILS formed a wholly owned subsidiary of Boeing Commercial Aviation Services (BCAS).

On August 18, 2007, NASA announced that Boeing would be the manufacturing contractor for the liquid-fueled upper stage of the Ares I rocket. The stage, based on both Apollo-Saturn and Space Shuttle technologies, will be constructed at NASA's Michoud Assembly Facility near New Orleans, the same site where Boeing constructed the massive S-IC stage of the Saturn V rocket in the 1960s.

Unethical conduct

In May 2003, the US Air Force announced it would lease 100 KC-767 tankers to replace the oldest 136 of its KC-135s. In November 2003, responding to critics who argued that the lease was more expensive than an outright purchase, the DoD announced a revised lease of 20 aircraft and purchase of 80. In December 2003, the Pentagon announced the project was to be frozen while an investigation of allegations of corruption by one of its former procurement staffers, Darleen Druyun (who began employment at Boeing in January) was begun. The fallout of this resulted in the resignation of Boeing CEO Philip M. Condit and the termination of CFO Michael M. Sears. Harry Stonecipher, former McDonnell Douglas CEO and Boeing COO, replaced Condit on an interim basis. Druyun pleaded guilty to inflating the price of the contract to favor her future employer and to passing information on the competing Airbus A330 MRTT bid. In October 2004, she was sentenced to nine months in jail for corruption, fined, given three years of supervised release and 150 hours of community service.

In March 2005, the Boeing board forced President and CEO Harry Stonecipher to resign. Boeing said an internal investigation revealed a "consensual" relationship between Stonecipher and a female executive that was "inconsistent with Boeing's Code of Conduct" and "would impair his ability to lead the company". James A. Bell served as interim CEO (in addition to his normal duties as Boeing’s CFO) until the appointment of Jim McNerney as the new Chairman, President, and CEO on June 30, 2005.

Industrial espionage

In June 2003, Lockheed Martin sued Boeing, alleging that the company had resorted to industrial espionage in 1998 to win the Evolved Expendable Launch Vehicle (EELV) competition. Lockheed claimed that the former employee Kenneth Branch, who went to work for McDonnell Douglas and Boeing, passed 25,000 proprietary documents to his new employers. Lockheed argued that these documents allowed Boeing to win 21 of the 28 tendered military satellite launches.

In July 2003, Boeing was penalized, with the Pentagon stripping $1 billion worth of contracts away from the company and awarding them to Lockheed Martin. Furthermore, the company was forbidden to bid for rocket contracts for a twenty-month period, which expired in March 2005.

In early September 2005, it was reported that Boeing was negotiating a settlement with the U.S. Department of Justice in which it would pay up to $500 million to cover this and the Darleen Druyun scandal.

2010s

In March 2011, Boeing made a deal with two Chinese airlines for a total 43 aircraft worth about $10 billion. Air China will buy 5 Boeing 747–8 aircraft which will be delivered between 2014 to 2015 if the deal is approved by the Chinese government. Hong Kong Airlines have still to finalize an agreement to buy 38 aircraft, which include 6 freighters and 30 Boeing Dreamliners.

The 92 EU-US Agreement notes

Until the late 1970s the US had an almost de facto monopoly in the Large Civil Aircraft (LCA) sector. The Airbus consortium (created in 1969) started competing effectively in the 1980s. At that stage the US became concerned about the European competition and the alleged subsidies paid by the European governments for the developments of the early models of the Airbus family. This became a major issue of contention, as the European side was equally concerned by subsidies accruing to US LCA manufacturers through NASA and Defense programs.

The EU and the US started bilateral negotiations for the limitation of government subsidies to the LCA sector in the late 1980s. Negotiations were concluded in 1992 with the signature of the EC-US Agreement on Trade in Large Civil Aircraft which imposes disciplines on government support on both sides of the Atlantic which are significantly stricter than the relevant WTO rules: Notably, the Agreement regulates in detail the forms and limits of government support, prescribes transparency obligations and commits the parties to avoiding trade disputes.

Subsidy disputes

In 2004 the EU and the US agreed to discuss a possible revision of the 1992 EU-US Agreement provided that this would cover all forms of subsidies including those used in the US, and in particular the subsidies for the Boeing 787; the first new aircraft to be launched by Boeing for 14 years. October 2004, the US began legal proceedings at the World Trade Organization by requesting WTO consultations on European launch investment to Airbus. The US also unilaterally withdrew from the 1992 EU-US Agreement.

In October 2004, Boeing filed a complaint at the World Trade Organization (WTO), claiming that Airbus had violated a 1992 bilateral accord when it received what Boeing deems as “unfair” subsidies from several European governments. Airbus retaliated by filing another complaint, contesting that Boeing had also violated the accord when it received tax breaks from the U.S. Government. Moreover, the E.U. also complained that the investment subsidies from Japanese airlines violated the accord.

On January 11, 2005, Boeing and Airbus agreed that they would attempt to find a solution to the dispute outside of the WTO. However, in June 2005, Boeing and the United States government reopened the trade dispute with the WTO, claiming that Airbus had received illegal subsidies from European governments. Airbus has also retaliated against Boeing, reopening the dispute and also accusing Boeing of receiving subsidies from the US government.

On September 15, 2010, the World Trade Organization ruled that Boeing had received billions of dollars in illegal government subsidies. Boeing responded that the ruling was a fraction of the size of the ruling against Airbus and would require few changes in its operations.

Recent product development

Commercial airplanes

Boeing has achieved several consecutive launches, beginning with the formal launch of the 787 for delivery to All Nippon Airways and Air New Zealand. Rollout of the first 787 occurred on July 8, 2007, with the first flight taking place on December 15, 2009.

Boeing also received the launch contract from the US Navy for the P-8 Multimission Maritime Aircraft, an anti-submarine warfare patrol aircraft. Several orders for the Wedgetail AEW&C; airplanes are expected as well.

Boeing launched the 777 Freighter in May 2005 with an order from Air France. The freighter variant is based on the −200LR. Other customers include FedEx, Emirates Airline, and Air Atlanta Icelandic. Boeing has achieved above projected orders for its 787 Dreamliner, outselling the rival Airbus A350.

Boeing officially announced in November 2005 that it would produce a larger variant of the 747, the 747-8, in two models, commencing with the Freighter model for two cargo carriers with firm orders for the aircraft. The second model, dubbed the Intercontinental, would be produced for passenger airlines that Boeing expected would place orders in the near future. Both models of the 747-8 would feature a lengthened fuselage, new, advanced engines and wings, and the incorporation of other technologies developed for the 787.

Boeing has also introduced new extended range versions of the 737. These include the 737-700ER and 737-900ER. The 737-900ER is the latest and will extend the range of the 737–900 to a similar range as the successful 737–800 with the capability to fly more passengers, due to the addition of two extra emergency exits.

The 777-200LR Worldliner embarked on a well-received global demonstration tour in the second half of 2005, showing off its capacity to fly farther than any other commercial aircraft. On November 10, 2005, the 777-200LR set a world record for the longest non-stop flight. The plane, which departed from Hong Kong traveling to London, took a longer route, which included flying over the U.S. It flew 11,664 nautical miles (21,601 km) during its 22-hour 42-minute flight. It was flown by Pakistan International Airlines pilots and PIA was the first airline to fly the 777-200LR Worldliner.

On August 11, 2006, Boeing announced an agreement to form a joint-venture with the large Russian titanium producer, VSMPO-Avisma for the machining of titanium forgings. The forgings will be used on 787 program. On December 27, 2007 Boeing and VSMPO-Avisma created a joint venture Ural Boeing Manufacturing and signed a contract on titanium products deliveries until 2015, with Boeing planning to invest $27 billion in Russia over the next 30 years.

Defense and other

Realizing that increasing numbers of passengers have become reliant on their computers to stay in touch, Boeing introduced Connexion by Boeing, a satellite based Internet connectivity service that promised air travelers unprecedented access to the World Wide Web. The company debuted the product to journalists in 2005, receiving generally favorable reviews. However, facing competition from cheaper options, such as cellular networks, it proved too difficult to sell to most airlines. In August 2006, after a short and unsuccessful search for a buyer for the business, Boeing chose to discontinue the service. Boeing also developed the Boeing KC-767 aerial refueling tanker. Italy ordered four KC-767s in December 2002, with the first one scheduled to be delivered in November 2008. Boeing and Italy are negotiating on the penalty for the late deliveries. Boeing stated the delay is due to such factors as design changes, expanded US flight testing, greater-than-expected challenges to software integration, and the complexity of getting the tanker ready for certification by the Federal Aviation Administration. Boeing's late delivery of a tanker to Japan in 2007 incurred a penalty "well under $5 million" according to Boeing. Boeing delivered the third aircraft to Japan in March 2009 and the last aircraft was delivered in January 2010.

In February 2011, Boeing received a contract for 179 KC-46 US Air Force tankers at a value of $35 billion. The KC-46 tankers are based on the KC-767.

Boeing jointly with Science Applications International Corporation (SAIC), were the prime contractors in the U.S. military's Future Combat Systems program. The FCS program was canceled in June 2009 with all remaining systems swept into the BCT Modernization program. Boeing works jointly with SAIC in the BCT Modernization program like the FCS program but the U.S. Army will play a greater role in creating baseline vehicles and will only contract others for accessories.

Defense Secretary Robert M. Gates' shift in defense spending to "make tough choices about specific systems and defense priorities based solely on the national interest and then stick to those decisions over time" hit Boeing especially hard, because of their heavy involvement with canceled Air Force projects.

In 2010 The Boeing Company completed its acquisition of Argon ST Inc. Argon ST, based in Fairfax, Va., develops C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) and combat systems. Boeing on June 30, 2010 announced its intent to acquire Argon ST as part of the company's strategy to expand its capabilities to address the C4ISR, cyber and intelligence markets.

Future concepts

In May 2006, four concept designs being examined by Boeing were outlined in The Seattle Times based on corporate internal documents. The research aims in two directions: low-cost airplanes, and environmental-friendly planes. Codenamed after the well-known Muppets a design team known as the Green Team concentrated primarily on reducing fuel usage. All four designs illustrated rear-engine layouts.

"Fozzie" employs open rotors and would offer a lower cruising speed.

"Beaker" has very thin, long wings, with the ability to partially fold-up to facilitate easier taxiing.

"Kermit Kruiser" has forward swept wings over which are positioned its engines, with the aim of lowering noise below due to the reflection of the exhaust signature upward.

"Honeydew" with its delta wing design, resembles a marriage of the flying wing concept and the traditional tube fuselage.

As with most concepts, these designs are only in the exploratory stage intended to help Boeing evaluate the potentials of such radical technologies.

Environment

Environmental record

Researchers at the University of Massachusetts had listed Boeing as the thirteenth-largest corporate producer of air pollution in the United States based on 2002 data, although data from 2008 shows that they have dropped off the list. According to the Center for Public Integrity, the United States Environmental Protection Agency has linked Boeing to more than twenty Superfund toxic waste sites.

In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, in the Simi Hills of eastern Ventura County in Southern California, had been contaminated with toxic and radioactive waste. The study found that air, soil, groundwater, and surface water at the site all contained radionuclides, toxic metals, and dioxins; air and water additionally contained perchlorate, TCE, and hydrazines, while water showed the presence of PCBs as well. Clean up studies and lawsuits are in progress.

Jet biofuels

The airline industry is responsible for about 11 percent of greenhouse gases emitted by the U.S. transportation sector. Aviation's share of the greenhouse gas emissions is poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel. Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80 percent. The solution would be blending algae fuels with existing jet fuel.

Boeing executives said the company is informally collaborating with leading Brazilian biofuels maker Tecbio, Aquaflow Bionomic of New Zealand and other fuel developers around the world. So far, Boeing has tested six fuels from these companies, and will probably have gone through 20 fuels "by the time we're done evaluating them." Boeing is joining other aviation-related members in the Algal Biomass Organization (ABO).

Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel. A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1 in the number one position Rolls Royce RB-211 engine of 747–400 ZK-NBS, was successfully completed on December 30, 2008. The engine was then removed to be scrutinised and studied to identify any differences between the Jatropha blend and regular Jet A1. No effects to performances were found.

On August 31, 2010, Boeing worked with the United States Air Force to test the Boeing C-17 running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.

Electric propulsion

Boeing has stated that for the subsonic concept, hybrid electric engine technology is a clear winner. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise.

Political contributions, federal contracts, advocacy

Boeing's 2010 lobbying expenditure by the third quarter was $13.2 million (2009 total: $16.9 million). In the 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in $197,000 – five times as much as John McCain, and more than the top eight Republicans combined."

In both 2009 and 2008 Boeing was second on the list of Top 100 US Federal Contractors, with contracts totalling $22.0 billion and $23.1 billion respectively.

Since 1995, the company has agreed to pay $1.6 billion to settle thirty-nine instances of misconduct, including $615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information.

The company is a member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs that advocates for a larger International Affairs Budget, which funds American diplomatic and development efforts abroad.

A series of cables show how US diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.

In 2007 and 2008 the company benefitted from over $10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.

Divisions

The two largest divisions are Boeing Commercial Airplanes and Boeing Defense, Space & Security (BDS).

Boeing Capital

Boeing Commercial Airplanes

Boeing Defense, Space & Security

*Phantom Works

Engineering, Operations & Technology

* Boeing Research & Technology

* Boeing Test & Evaluation

* Intellectual Property Management

* Information Technology

Environment, Health, and Safety

Boeing Shared Services Group

* Boeing Realty

* Boeing Travel Management Company

Employment numbers

{| |- | style="text-align:left; vertical-align:top; width:50%;"|

+ Employment by location
!Location!!Employees
Alabama
Arizona
California
Kansas
Missouri
Pennsylvania
Texas
Other Locations
Total Company

| style="vertical-align:top; width:33%;"|

+ Employment by division
!Group!!Employees
Boeing Defense, Space & Security
Engineering, Operations & Technology
Finance & Shared Services
Other
Corporate	style="text-align: right;"
Total Company

|} Approximately 1.5% of Boeing employees are in the Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company. The average salary at Boeing is $76,784, reported by former employees.

Corporate governance

{| |- | style="text-align:left; vertical-align:top; width:50%;"|

Current board of directors

W. James McNerney, Jr. – Chairman, President & CEO

John H. Biggs

John Bryson

David L. Calhoun

Arthur D. Collins, Jr.

Linda Cook

William M. Daley

Kenneth M. Duberstein

Admiral Edmund P. Giambastiani, Jr., U.S. Navy (ret)

John McDonnell

Susan C. Schwab

Mike S. Zafirovski

Chief executive officer

{| |- | 1933–1939 || Clairmont L. Egtvedt |- | 1939–1944 || Philip G. Johnson |- | 1944–1945 || Clairmont L. Egtvedt |- | 1945–1968 || William M. Allen |- | 1969–1986 || Thornton “T” A. Wilson |- | 1986–1996 || Frank A. Shrontz |- | 1996–2003 || Philip M. Condit |- | 2003–2005 || Harry C. Stonecipher |- | 2005 || James A. Bell (acting) |- | 2005– || W. James McNerney, Jr. |} | style="vertical-align:top; width:33%;"|

Chairman of the board

{| |- | 1916–1934 || William E. Boeing |- | 1934–1939 || Clairmont L. Egtvedt (acting) |- | 1939–1966 || Clairmont L. Egtvedt |- | 1968–1972 || William M. Allen |- | 1972–1987 || Thornton "T" A. Wilson |- | 1988–1996 || Frank A. Shrontz |- | 1997–2003 || Philip M. Condit |- | 2003–2005 || Lew Platt |- | 2005– || W. James McNerney, Jr. |}

President

{| |- | 1922–1925 || Edgar N. Gott |- | 1926–1933 || Philip G. Johnson |- | 1933–1939 || Clairmont L. Egtvedt |- | 1939–1944 || Philip G. Johnson |- | 1944–1945 || Clairmont L. Egtvedt |- | 1945–1968 || William M. Allen |- | 1968–1972 || Thornton “T” A. Wilson |- | 1972–1985 || Malcolm T. Stamper |- | 1985–1996 || Frank A. Shrontz |- | 1996–1997 || Philip M. Condit |- | 1997–2005 || Harry Stonecipher |- | 2005 || James A. Bell (acting) |- | 2005– || W. James McNerney, Jr. |} |}

See also

Boeing Aircraft Holding Company

Boeing Canada

Boeing hydrofoils

Boeing Everett Factory

Boeing Renton Factory

Boeing Plant 1

Boeing Plant 2

Future of Flight Aviation Center & Boeing Tour – Corporate public museum

Competition between Airbus and Boeing

Plant 42

Boeing Models

North Charleston, South Carolina – Site of 2nd 787 Assembly line

Top 100 US Federal Contractors – $22.0 billion in FY2009

References

Further reading

Greider, William. ''One World, Ready or Not: The Manic Logic of Global Capitalism''. London: Penguin Press, 1997. ISBN 0-7139-9211-5.

External links

The Boeing Company official website

*Boeing order sheet, year-to-date

Official site for Boeing's new airplanes

Historical Annual Reports for Boeing

Boeing airliner images on airplanes.se

Boeing’s Triumph: The American Jetliner

Yahoo! – The Boeing Company Company Profile

Transcripts of The Boeing Company's Quarterly Conference Calls

Subsidy war could harm Boeing more than Airbus, UB researcher says

BBC Q&A;: Boeing and Airbus

Complete production list starting with Model 1

Interactive historical chart of The Boeing Company from 1962

Boeing Seaplane of 1919 shown in a New Zealand's maximum card

Boeing contract with USAF could mean $25M, 450 jobs for Michigan

Category:Aerospace companies of the United States Category:Aircraft manufacturers of the United States Category:Companies based in Chicago, Illinois Category:Dow Jones Industrial Average Category:Wind turbine manufacturers Category:Companies established in 1916 Category:History of Seattle, Washington Category:Defense companies of the United States Category:Space Act Agreement companies

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conventional long name	Hong Kong Special Administrative Region of the People's Republic of China although "Hong Kong Special Administrative Region" and "Hong Kong" are also accepted.|groupnote}}

| native_name = 中華人民共和國香港特別行政區 | common_name = Hong Kong | image_flag = Flag of Hong Kong.svg | alt_flag = A flag with a white 5-petalled flower design on solid red background | image_coat = Hong Kong SAR Regional Emblem.svg | alt_coat = A red circular emblem, with a white 5-petalled flower design in the centre, and surrounded by the words "Hong Kong" and "中華人民共和國香港特別行政區" | symbol_type = Emblem | national_anthem = ''March of the Volunteers'' 《義勇軍進行曲》 | image_map = Hong Kong Skyline Restitch - Dec 2007.jpg | map_caption = View at night from Victoria Peak | alt_map = A panorama overlooking the skyscrapers of Hong Kong at night, with Victoria Harbour in the background | image_map2 = Hong Kong Location.svg | map2_width = 250px | alt_map2 = Hong Kong is situated on a peninsula and series of islands on the south coast of China, to the east of the Pearl River Delta and bordered to the north by Guangdong province | official_languages = Chinese, English It does not explicitly specify the standard for "Chinese". While Mandarin written in Simplified Chinese characters are the standards in mainland China, Cantonese and Traditional Chinese characters are the ''de facto'' standards in Hong Kong. ''See also: Bilingualism in Hong Kong''.|group=note}} | languages_type = Spoken languages | languages = Cantonese, English | demonym = Hong Konger | leader_title1 = Chief Executive | leader_name1 = Donald Tsang | leader_title2 = Chief Justice | leader_name2 = Geoffrey Ma | leader_title3 = President of theLegislative Council | leader_name3 = Jasper Tsang | legislature = Legislative Council | government_type = Quasi-presidential autonomous region with limited suffrage | sovereignty_type = Establishment | established_event1 = Treaty of Nanking | established_date1 = 29 August 1842 | established_event2 = Japanese occupation | established_date2 = 25 December 1941 –15 August 1945 | established_event3 = Handover to China | established_date3 = 1 July 1997 | latd= 22 | latm= 16.7 | latNS = N | longd= 114 |longm= 09.533 |longEW = E | area_magnitude = 1 E9 | area_km2 = 1,104 | area_rank = 179th | area_sq_mi = 426 | percent_water = 4.58 (50 km²; 19 mi²) | population_census = 7,061,200 | population_census_year = 2010 | population_density_km2 = 6480 | population_density_sq_mi = 16576 | population_density_rank = 4th | GDP_PPP = $326 billion | GDP_PPP_rank = | GDP_PPP_year = 2010 | GDP_PPP_per_capita = $45,736 | GDP_PPP_per_capita_rank = | GDP_nominal = $225 billion | GDP_nominal_rank = | GDP_nominal_year = 2010 | GDP_nominal_per_capita = $31,590 | GDP_nominal_per_capita_rank = | Gini = 43.4 | Gini_year = 2007 | HDI = 0.862 | HDI_rank = 21st | HDI_year = 2010 | HDI_category = very high | currency = Hong Kong dollar | currency_code = HKD | time_zone = HKT | utc_offset = +8 | date_format = yyyy年m月d日 (Chinese) dd-mm-yyyy (English) | drives_on = left | cctld = .hk and .香港 | calling_code = +852 | nicknames = HK, The 852 }}

pic	Hong Kong in Chinese 2.svg
picsize	100px
c	香港
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j	hoeng1gong2
y	Hēunggóng
p	Xiānggǎng
w	Hsiang1-kang3
mi
wuu	shian平kaon上
poj	Hiong-kang
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showflag	jyp }}

Hong Kong () is one of two special administrative regions (SARs) of the People's Republic of China (PRC), the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour. With a land mass of and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong's population is 95 percent ethnic Chinese and 5 percent from other groups. Hong Kong's Han Chinese majority originate mainly from the cities of Guangzhou and Taishan in the neighbouring Guangdong province.

Hong Kong became a colony of the British Empire after the First Opium War (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon Peninsula in 1860 and then the New Territories in 1898. It was occupied by Japan during the Pacific War, after which the British resumed control until 1997, when China resumed sovereignty. The region espoused minimum government intervention under the ethos of positive non-interventionism during the colonial era. The time period greatly influenced the current culture of Hong Kong, often described as "East meets West", and the educational system, which used to loosely follow the system in England until reforms implemented in 2009.

Under the principle of "one country, two systems", Hong Kong has a different political system from mainland China. Hong Kong's independent judiciary functions under the common law framework. The Basic Law of Hong Kong, its constitutional document, which stipulates that Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations and military defence, governs its political system. Although it has a burgeoning multi-party system, a small-circle electorate controls half of its legislature. An 800-person Election Committee selects the Chief Executive of Hong Kong, the head of government.

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. The lack of space caused demand for denser constructions, which developed the city to a centre for modern architecture and the world's most vertical city. The dense space also led to a highly developed transportation network with public transport travelling rate exceeding 90 percent, the highest in the world. Hong Kong has numerous high international rankings in various aspects. For instance, its economic freedom, financial and economic competitiveness, quality of life, corruption perception, Human Development Index, etc., are all ranked highly.

Etymology

The name "Hong Kong" is an approximate phonetic rendering of the pronunciation of the spoken Cantonese or Hakka name "香港", meaning "fragrant harbour". Before 1842, the name referred to a small inlet – now Aberdeen Harbour or Little Hong Kong – between the island of Ap Lei Chau and the south side of Hong Kong Island, which was one of the first points of contact between British sailors and local fishermen.

The reference to fragrance may refer to the harbour waters sweetened by the fresh water estuarine influx of the Pearl River, or to the incense from factories lining the coast to the north of Kowloon, which was stored around Aberdeen Harbour for export before the development of Victoria Harbour. In 1842, the Treaty of Nanking was signed, and the name Hong Kong was first recorded on official documents to encompass the entirety of the island.

History

Pre-colonial

Archaeological studies support a human presence in the Chek Lap Kok area from 35,000 to 39,000 years ago, and in Sai Kung Peninsula from 6,000 years ago. Wong Tei Tung and Three Fathoms Cove are the two earliest sites of human habitation in the Palaeolithic period. It is believed the Three Fathom Cove was a river valley settlement and Wong Tei Tung was a lithic manufacturing site. Excavated Neolithic artefacts suggest cultural differences from the Longshan culture in northern China and settlement by the Che people prior to the migration of the Baiyue. Eight petroglyphs were discovered on surrounding islands, which dated to the Shang Dynasty in China.

In 214 BC, Qin Shi Huang, the first emperor of China, conquered the Baiyue tribes in Jiaozhi (modern Liangguang region) and incorporated the territory into imperial China for the first time. Modern Hong Kong is located in Nanhai commandery (modern Nanhai District) and near the ancient capital city Pun Yue. The area was consolidated under the kingdom of Nanyue, founded by general Zhao Tuo in 204 BC after the Qin Dynasty collapsed. When the kingdom was conquered by Emperor Wu of Han in 111 BC, the land was assigned to the Jiaozhi commandery under the Han Dynasty. Archaeological evidence indicates the population increased and early salt production flourished in this time period. Lei Cheng Uk Han Tomb in the Kowloon Peninsula is believed to have been built during the Han Dynasty.

During the Tang Dynasty period, the Guangdong region flourished as a regional trading center. In 736, Emperor Xuanzong of Tang established a military town in Tuen Mun to defend the coastal area in the region. The first village school, Li Ying College, was established around 1075 in the New Territories under the Northern Song Dynasty. During the Mongol invasion in 1276, the Southern Song Dynasty court moved to Fujian, then to Lantau Island and later to Sung Wong Toi (modern Kowloon City), but the child Emperor Huaizong of Song committed suicide by drowning with his officials after being defeated in the Battle of Yamen. Hau Wong, an official of the emperor is still worshipped in Hong Kong today.

The earliest recorded European visitor was Jorge Álvares, a Portuguese explorer who arrived in 1513. After establishing settlements in the region, Portuguese merchants began trading in southern China. At the same time, they invaded and built up military fortifications in Tuen Mun. Military clashes between China and Portugal led to the expulsion of the Portuguese. In the mid-16th century, the Haijin order banned maritime activities and prevented contact with foreigners; it also restricted local sea activity. In 1661–69, the territory was affected by the Great Clearance ordered by Kangxi Emperor, which required the evacuation of the coastal areas of Guangdong. It is recorded that about 16,000 persons from Xin'an County were driven inland, and 1,648 of those who left are said to have returned when the evacuation was rescinded in 1669. What is now the territory of Hong Kong became largely wasteland during the ban. In 1685, Kangxi became the first emperor to open limited trading with foreigners, which started with the Canton territory. He also imposed strict terms for trades such as requiring foreign traders to live in restricted areas, staying only for the trading seasons, banning firearms, and trading with silver only. The East India Company made the first sea venture to China in 1699, and the region's trade with British merchants developed rapidly soon after. In 1711, the company established its first trading post in Canton. By 1773, the British reached a landmark 1,000 chests of opium in Canton with China consuming 2,000 chests annually by 1799.

British colonial era

In 1839, the refusal by Qing Dynasty authorities to import opium resulted in the First Opium War between China and Britain. Hong Kong Island was occupied by British forces on 20 January 1841 and was initially ceded under the Convention of Chuenpee as part of a ceasefire agreement between Captain Charles Elliot and Governor Qishan, but the agreement was never ratified due to a dispute between high ranking officials in both governments. It was not until 29 August 1842 that the island was formally ceded in perpetuity to the United Kingdom under the Treaty of Nanking. The British established a crown colony with the founding of Victoria City the following year.

In 1860, after China's defeat in the Second Opium War, the Kowloon Peninsula and Stonecutter's Island were ceded in perpetuity to Britain under the Convention of Peking.

In 1894, the deadly Third Pandemic of bubonic plague spread from China to Hong Kong, causing 50,000–100,000 deaths.

In 1898, under the terms of the Convention for the Extension of Hong Kong Territory, Britain obtained a 99-year lease of Lantau Island and the adjacent northern lands, which became known as the New Territories. Hong Kong's territory has remained unchanged to the present.

During the first half of the 20th century, Hong Kong was a free port, serving as an entrepôt of the British Empire. The British introduced an education system based on their own model, while the local Chinese population had little contact with the European community of wealthy ''tai-pans'' settled near Victoria Peak.

In conjunction with its military campaign, the Empire of Japan invaded Hong Kong on 8 December 1941. The Battle of Hong Kong ended with British and Canadian defenders surrendering control of the colony to Japan on 25 December. During the Japanese occupation of Hong Kong, civilians suffered widespread food shortages, rationing, and hyper-inflation due to forced exchange of currency for military notes. Through a policy of enforced repatriation of the unemployed to the mainland throughout the period, because of the scarcity of food, the population of Hong Kong had dwindled from 1.6 million in 1941 to 600,000 in 1945, when the United Kingdom resumed control of the colony.

Hong Kong's population recovered quickly as a wave of migrants from China arrived for refuge from the ongoing Chinese Civil War. When the PRC was proclaimed in 1949, more migrants fled to Hong Kong for fear of persecution by the Communist Party. Many corporations in Shanghai and Guangzhou shifted their operations to Hong Kong.

In the 1950s, Hong Kong's rapid industrialisation was driven by textile exports and other expanded manufacturing industries. As the population grew and labour costs remained low, living standards rose steadily. The construction of Shek Kip Mei Estate in 1953 followed a massive slum fire, and marked the beginning of the public housing estate programme designed to cope with the huge influx of immigrants. Trade in Hong Kong accelerated even further when Shenzhen, immediately north of Hong Kong, became a special economic zone of the PRC, and Hong Kong was established as the main source of foreign investment in China. The manufacturing competitiveness gradually declined in Hong Kong due to the development of the manufacturing industry in southern China beginning in the early 1980s. By contrast, the service industry in Hong Kong experienced high rates of growth in the 1980s and 1990s after absorbing workers released from the manufacturing industry.

In 1983, when the United Kingdom reclassified Hong Kong from a British crown colony to a dependent territory, the governments of the United Kingdom and China were already discussing the issue of Hong Kong's sovereignty due to the impending expiry (within two decades) of the lease of the New Territories. In 1984, the Sino-British Joint Declaration – an agreement to transfer sovereignty to the People's Republic of China in 1997 – was signed. It stipulated that Hong Kong would be governed as a special administrative region, retaining its laws and a high degree of autonomy for at least 50 years after the transfer. The Hong Kong Basic Law, which would serve as the constitutional document after the transfer, was ratified in 1990.

Since 1997

On 1 July 1997, the transfer of sovereignty from United Kingdom to the PRC occurred, officially ending 156 years of British colonial rule. Hong Kong became China's first special administrative region, and Tung Chee Hwa took office as the first Chief Executive of Hong Kong. That same year, Hong Kong suffered an economic double blow from the Asian financial crisis and the H5N1 avian influenza. In 2003, Hong Kong was gravely affected by the outbreak of severe acute respiratory syndrome (SARS). The World Health Organization reported 1,755 infected and 299 deaths in Hong Kong. An estimated 380 million Hong Kong dollars (US$48.9 million) in contracts were lost as a result of the epidemic.

On 10 March 2005, Tung Chee Hwa announced his resignation as Chief Executive due to "health problems". Donald Tsang, the Chief Secretary for Administration at the time, entered the 2005 election unopposed and became the second Chief Executive of Hong Kong on 21 June 2005. In 2007, Tsang won the Chief Executive election and continued his second term in office.

In 2009, Hong Kong hosted the fifth East Asian Games, in which nine national teams competed. It was the first and largest international multi-sport event ever held in the territory. Today, Hong Kong continues to serve as an important global financial centre, but faces uncertainty over its future due to the growing mainland China economy, and its relationship with the PRC government in areas such as democratic reform and universal suffrage.

Governance

In accordance with the Sino-British Joint Declaration, and the underlying principle of one country, two systems, Hong Kong has a "high degree of autonomy as a special administrative region in all areas except defence and foreign affairs." The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years beyond the 1997 handover. The guarantees over the territory's autonomy and the individual rights and freedoms are enshrined in a constitution, the Hong Kong Basic Law, which outlines the system of governance of the Hong Kong Special Administrative Region, but which is subject to the interpretation of the Standing Committee of the National People's Congress (NPCSC).

The primary pillars of government are the Executive Council, the civil service, the Legislative Council, and the Judiciary. The Executive Council is headed by the Chief Executive who is elected by the Election Committee and then appointed by the Central People's Government. The civil service is a politically neutral body that implements policies and provides government services, where public servants are appointed based on meritocracy. The Legislative Council has 60 members, half of which are directly elected by universal suffrage by permanent residents of Hong Kong according to five geographical constituencies. The other half, known as functional constituencies, are directly elected by a smaller electorate, which consists of corporate bodies and persons from various stipulated functional sectors. The entire council is headed by the President of the Legislative Council who serves as the speaker. Judges are appointed by the Chief Executive on the recommendation of an independent commission.

The implementation of the Basic Law, including how and when the universal suffrage promised therein is to be achieved, has been a major issue of political debate since the transfer of sovereignty. In 2002, the government's proposed anti-subversion bill pursuant to Article 23 of the Basic Law, which required the enactment of laws prohibiting acts of treason and subversion against the Chinese government, was met with fierce opposition, and eventually shelved. Debate between pro-Beijing groups, which tend to support the Executive branch, and the Pan-democracy camp characterises Hong Kong's political scene, with the latter supporting a faster pace of democratisation, and the principle of one man, one vote.

In 2004, the government failed to gain pan-democrat support to pass its so-called "district council model" for political reform. In 2009, the government reissued the proposals as the "''Consultation Document on the Methods for Selecting the Chief Executive and for Forming the LegCo in 2012''". The document proposed the enlargement of the Election Committee, Hong Kong's electoral college, from 800 members to 1,200 in 2012 and expansion of the legislature from 60 to 70 seats. The 10 new legislative seats would consist of five geographical constituency seats and five functional constituency seats, to be voted in by elected district council members from among themselves. The proposals were destined for rejection by pan-democrats once again, but a significant breakthrough occurred after the Central People's Government accepted a counter-proposal by the Democratic Party. In particular, the Pan-democracy camp was split when the proposal to directly elect five newly created functional seats was not acceptable to two constituent parties. The Democratic Party sided with the government for the first time since the handover and passed the proposals with a vote of 46–12.

Legal system and judiciary

Hong Kong's legal system is completely independent from the legal system of Mainland China. In contrast to mainland China's civil law system, Hong Kong continues to follow the English Common Law tradition established under British rule. Hong Kong's courts may refer to decisions rendered by courts of other common law jurisdictions as precedents, and judges from other common law jurisdictions are allowed to sit as non-permanent judges of the Court of Final Appeal.

Structurally, the court system consists of the Court of Final Appeal, the High Court, which is made up of the Court of Appeal and the Court of First Instance, and the District Court, which includes the Family Court. Other adjudicative bodies include the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labour Tribunal, the Small Claims Tribunal, and the Obscene Articles Tribunal. Justices of the Court of Final Appeal are appointed by Hong Kong's Chief Executive.

The Department of Justice is responsible for handling legal matters for the government. Its responsibilities include providing legal advice, criminal prosecution, civil representation, legal and policy drafting and reform, and international legal cooperation between different jurisdictions. Apart from prosecuting criminal cases, lawyers of the Department of Justice act on behalf of the government in all civil and administrative lawsuits against the government. As protector of the public interest, the department may apply for judicial reviews and may intervene in any cases involving the greater public interest. The Basic Law protects the Department of Justice from any interference by the government when exercising its control over criminal prosecution.

Human rights

In general, Hong Kong is perceived to enjoy a high level of civil liberties. The Hong Kong government generally respect the human rights of the citizens, although core issues remain. There are concerns over the freedom of assembly which is restricted by the Public Order Ordinance. The police has been occasionally accused of using heavy-handed tactics towards protestors and questions are asked towards the extensive powers of the police. As to the right of privacy, covert surveillance remains the major concern. There is a lack of protection for homosexuals due to the absence of a sexual orientation discrimination law. There are also comments regarding a lack of protection for labour rights.

Internet access in Hong Kong is not under the censorship, surveillance, and control of the Great Firewall of China.

Administrative districts

Hong Kong has a unitary system of government; no local government has existed since the two municipal councils were abolished in 2000. As such there is no formal definition for its cities and towns. Administratively, Hong Kong is subdivided into 18 geographic districts, each represented by a district council which advises the government on local matters such as public facilities, community programmes, cultural activities, and environmental improvements.

There are a total of 534 district council seats, 405 of which are elected; the rest are appointed by the Chief Executive and 27 ''ex officio'' chairmen of rural committees. The Home Affairs Department communicates government policies and plans to the public through the district offices.

Military

When Hong Kong was a British colony and later, a dependent territory, defence was provided by the British military under the command of the Governor of Hong Kong who was ''ex officio'' Commander-in-chief. When the PRC assumed sovereignty in 1997, the British barracks were replaced by a garrison of the People's Liberation Army, comprising ground, naval, and air forces, and under the command of the Chinese Central Military Commission.

The Basic Law protects local civil affairs against interference by the garrison, and members of the garrison are subject to Hong Kong laws. The Hong Kong Government remains responsible for the maintenance of public order; however, it may ask the PRC government for help from the garrison in maintaining public order and in disaster relief. The PRC government is responsible for the costs of maintaining the garrison.

Geography and climate

Hong Kong is located on China's south coast, east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the Guangdong city of Shenzhen to the north over the Shenzhen River. The territory's area consists of Hong Kong Island, the Kowloon Peninsula, the New Territories, and over 200 offshore islands, of which the largest is Lantau Island. Of the total area, is land and is inland water. Hong Kong claims territorial waters to a distance of . Its land area makes Hong Kong the 179th largest inhabited territory in the world.

As much of Hong Kong's terrain is hilly to mountainous with steep slopes, less than 25% of the territory's landmass is developed, and about 40% of the remaining land area is reserved as country parks and nature reserves. Most of the territory's urban development exists on Kowloon peninsula, along the northern edge of Hong Kong Island, and in scattered settlements throughout the New Territories. The highest elevation in the territory is at Tai Mo Shan, above sea level. Hong Kong's long and irregular coast provides it with many bays, rivers and beaches.

Despite Hong Kong's reputation of being intensely urbanised, the territory has tried to promote a green environment, and recent growing public concern has prompted the severe restriction of further land reclamation from Victoria Harbour. Awareness of the environment is growing as Hong Kong suffers from increasing pollution compounded by its geography and tall buildings. Approximately 80% of the city's smog originates from other parts of the Pearl River Delta.

Though it is situated just south of the Tropic of Cancer, Hong Kong has a humid subtropical climate (Köppen ''Cwa''). Summer is hot and humid with occasional showers and thunderstorms, and warm air coming from the southwest. Summer is when typhoons are most likely, sometimes resulting in flooding or landslides. Winters are mild and usually start sunny, becoming cloudier towards February; the occasional cold front brings strong, cooling winds from the north. The most temperate seasons are spring, which can be changeable, and autumn, which is generally sunny and dry. Hong Kong averages 1,948 hours of sunshine per year, while the highest and lowest ever recorded temperatures at the Hong Kong Observatory are and , respectively.

Economy

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid development from the 1960s to the 1990s. Between 1961 and 1997 Hong Kong's gross domestic product grew 180 times while per-capita GDP increased 87 times over.

The Hong Kong Stock Exchange is the seventh largest in the world, with a market capitalisation of US$2.3 trillion as of December 2009. In that year, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world. Hong Kong's currency is the Hong Kong dollar, which has been pegged to the U.S. dollar since 1983.

The Hong Kong Government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.

Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the SARS outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended. Government intervention, initiated by the later colonial governments and continued since 1997, has steadily increased, with the introduction of export credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.

The territory has little arable land and few natural resources, so it imports most of its food and raw materials. Hong Kong is the world's eleventh largest trading entity, with the total value of imports and exports exceeding its gross domestic product. It is the world's largest re-export centre. Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Even before the transfer of sovereignty, Hong Kong had established extensive trade and investment ties with the mainland, which now enable it to serve as a point of entry for investment flowing into the mainland. At the end of 2007, there were 3.46 million people employed full-time, with the unemployment rate averaging 4.1% for the fourth straight year of decline. Hong Kong's economy is dominated by the service sector, which accounts for over 90% of its GDP, while industry constitutes 9%. Inflation was at 2.5% in 2007. Hong Kong's largest export markets are mainland China, the United States, and Japan.

As of 2010, Hong Kong is the eighth most expensive city for expatriates, falling from fifth position in the previous year. In 2011, Hong Kong was ranked second in the Ease of Doing Business Index, behind Singapore. General principle No. 5 of the Basic Law of the SAR suggests that the CPC expects that it shall have brought the economic system of the Mainland and Hong Kong into harmony by 2047, by which time the Chinese economy is predicted to have been the largest by any measure of GDP for decades.

Demographics

The territory's population is 7.03 million. In 2009, Hong Kong had a birth rate of 11.7 per 1,000 population and a fertility rate of 1,032 children per 1,000 women. Residents from mainland China do not have the right of abode in Hong Kong, nor are they allowed to enter the territory freely. However, the influx of immigrants from mainland China, approximating 45,000 per year, is a significant contributor to its population growth – a daily quota of 150 Mainland Chinese with family ties in Hong Kong are granted a "one way permit". Life expectancy in Hong Kong is 79.16 years for males and 84.79 years for females as of 2009, making it one of the highest life expectancies in the world.

About 95% of the people of Hong Kong are of Chinese descent, the majority of whom are Taishanese, Chiu Chow, other Cantonese people, and Hakka. Hong Kong's Han majority originate mainly from the Guangzhou and Taishan regions in Guangdong province. The remaining 5% of the population is composed of non-ethnic Chinese. There is a South Asian population of Indians, Pakistanis and Nepalese; some Vietnamese refugees have become permanent residents of Hong Kong. There are also Europeans (mostly British), Americans, Canadians, Japanese, and Koreans working in the city's commercial and financial sector.|group=note}} In 2008, there were an estimate of 252,500 foreign domestic helpers from Indonesia and the Philippines working in Hong Kong.

Hong Kong's ''de facto'' official language is Cantonese, a Chinese language originating from Guangdong province to the north of Hong Kong. English is also an official language, and according to a 1996 by-census is spoken by 3.1 percent of the population as an everyday language and by 34.9 percent of the population as a second language. Signs displaying both Chinese and English are common throughout the territory. Since the 1997 handover, an increase in immigrants from mainland China and greater integration with the mainland economy have brought an increasing number of Mandarin speakers to Hong Kong.

The majority of residents of Hong Kong would claim no religious affiliation, professing a form of agnosticism or atheism. According to the U.S Department of State only 43 percent of the population practices some form of religion. Some figures put it higher, according to a Gallup poll, 64% of Hong Kong do not believe in any religion, and possibly 80% of Hong Kong claim no religion. According to another gallup poll, Hong Kong is the seventh country which considers religion as an important part of their daily lives, with only 22%. In Hong Kong teaching evolution won out in curriculum dispute about whether to teach other explanations, and that creationism and intelligent design will form no part of the senior secondary biology curriculum

Hong Kong enjoys a high degree of religious freedom, guaranteed by the Basic Law. Hong Kong's main religions are Buddhism, Taoism, and Confucianism, a local religious scholar in contact with major denominations estimates there are approximately 1.5 million Buddhists and Taoists. A Christian community of around 600,000 forms about 8% of the total population; it is nearly equally divided between Catholics and Protestants, although smaller Christian communities exist, including the Latter-Day Saints and Jehovah's Witnesses. The Anglican and Roman Catholic churches each freely appoint their own bishops, unlike in mainland China. There are also Sikh, Muslim, Jewish, Hindu and Bahá'í communities. The practice of Falun Gong is tolerated.

Statistically Hong Kong's income gap is the greatest in Asia Pacific. According to a report by the United Nations Human Settlements Programme in 2008, Hong Kong's Gini coefficient, at 0.53, was the highest in Asia and "relatively high by international standards". However, the government has stressed that income disparity does not equate to worsening of the poverty situation, and that the Gini coefficient is not strictly comparable between regions. The government has named economic restructuring, changes in household sizes, and the increase of high-income jobs as factors that have skewed the Gini coefficient.

Education

Hong Kong's education system used to roughly follow the system in England, although international systems exist. The government maintains a policy of "mother tongue instruction" () in which the medium of instruction is Cantonese, with written Chinese and English. In secondary schools, 'biliterate and trilingual' proficiency is emphasised, and Mandarin-language education has been increasing. The Programme for International Student Assessment ranked Hong Kong's education system as the second best in the world. Hong Kong's public schools are operated by the Education Bureau. The system features a non-compulsory three-year kindergarten, followed by a compulsory six-year primary education, a three-year junior secondary education, a non-compulsory two-year senior secondary education leading to the Hong Kong Certificate of Education Examinations and a two-year matriculation course leading to the Hong Kong Advanced Level Examinations. The New Senior Secondary academic structure and curriculum was implemented in September 2009, which provides for all students to receive three years of compulsory junior and three years of compulsory senior secondary education. Under the new curriculum, there is only public examination, namely the Hong Kong Diploma of Secondary Education.

Most comprehensive schools in Hong Kong fall under three categories: the rarer public schools; the more common subsidised schools, including government aids-and-grant schools; and private schools, often run by Christian organisations and having admissions based on academic merit rather than on financial resources. Outside this system are the schools under the Direct Subsidy Scheme and private international schools.

There are nine public universities in Hong Kong, and a number of private higher institutions, offering various bachelor's, master's, and doctoral degrees, other higher diplomas, and associate degree courses.The University of Hong Kong, the oldest institution of tertiary education in the territory, was described by Quacquarelli Symonds as a "world-class comprehensive research university" and was ranked 24th on the 2009 THES - QS World University Rankings, making it first in Asia. The Hong Kong University of Science & Technology was ranked 35th in the world in 2009 and ranked second in Asia for 2010. The Chinese University of Hong Kong was ranked 46th in the world in 2009 and ranked fourth in Asia for 2010. Based on the 2011 rankings published by career and education network QS, three of the top five Asian universities are in Hong Kong. They are the Hong Kong University of Science and Technology, the University of Hong Kong and Chinese University of Hong kong as first, second and fifth rank, respectively.

Healthcare

There are 13 private hospitals and more than 50 public hospitals in Hong Kong. Among the widest range of healthcare services throughout the globe are on offer, and some of the SAR's private hospitals are rightly considered to be among the very best of their type in the world.

There are two medical schools in the SAR, one based at the Chinese University of Hong Kong and the other at Hong Kong University. Both have strong links with public sector hospitals.

With respect to postgraduate education, many Hong Kong doctors have traditionally look overseas for further training, and many took British Royal College exams such as the MRCP(UK) and the MRCS(UK). However, Hong Kong has been developing its own postgraduate medical institutions, in particular the Hong Kong Academy of Medicine, and this is gradually taking over the responsibility for all postgraduate medical training in the SAR.

There are also strong public health systems in Hong Kong, and the Centre for Health Protection, founded after the SARS outbreak of 2003, is particularly worthy of mention.

Culture

Hong Kong is frequently described as a place where "East meets West", reflecting the culture's mix of the territory's Chinese roots with influences from its time as a British colony. Hong Kong balances a modernised way of life with traditional Chinese practices. Concepts like ''feng shui'' are taken very seriously, with expensive construction projects often hiring expert consultants, and are often believed to make or break a business. Other objects like Ba gua mirrors are still regularly used to deflect evil spirits, and buildings often lack any floor number that has a 4 in it, due to its similarity to the word for "die" in Cantonese. The fusion of east and west also characterises Hong Kong's cuisine, where dim sum, hot pot, and fast food restaurants coexist with haute cuisine.

Hong Kong is a recognised global centre of trade, and calls itself an "entertainment hub". Its martial arts film genre gained a high level of popularity in the late 1960s and 1970s. Several Hollywood performers, notable actors and martial artists have originated from Hong Kong cinema, notably Bruce Lee, Jackie Chan, Chow Yun-fat, Michelle Yeoh, Maggie Cheung and Jet Li. A number of Hong Kong film-makers have achieved widespread fame in Hollywood, such as John Woo, Wong Kar-wai, and Stephen Chow.

The Hong Kong government supports cultural institutions such as the Hong Kong Heritage Museum, the Hong Kong Museum of Art, the Hong Kong Academy for Performing Arts, and the Hong Kong Philharmonic Orchestra. The government's Leisure and Cultural Services Department subsidises and sponsors international performers brought to Hong Kong. Many international cultural activities are organised by the government, consulates, and privately.

Hong Kong has two licensed terrestrial broadcasters – ATV and TVB. There are three local and a number of foreign suppliers of cable and satellite services. The production of Hong Kong's soap dramas, comedy series, and variety shows reach audiences throughout the Chinese-speaking world. Magazine and newspaper publishers in Hong Kong distribute and print in both Chinese and English, with a focus on sensationalism and celebrity gossip. The media in Hong Kong is relatively free from official interference compared to mainland China, although the ''Far Eastern Economic Review'' points to signs of self-censorship by journals whose owners have close ties to or business interests in the People's Republic of China and states that even Western media outlets are not immune to growing Chinese economic power.

Hong Kong offers wide recreational and competitive sport opportunities despite its limited land area. It sends delegates to international competitions such as the Olympic Games and Asian Games, and played host to the equestrian events during the 2008 Summer Olympics. There are major multipurpose venues like Hong Kong Coliseum and MacPherson Stadium. Hong Kong's steep terrain and extensive trail network with expansive views attracts hikers, and its rugged coastline provides many beaches for swimming.

Cityscape

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Architecture

According to Emporis, there are 7,650 skyscrapers in Hong Kong, which puts the city at the top of world rankings. It has more buildings higher than 35m (or 100m, or 150m) than any other city. The high density and tall skyline of Hong Kong's urban area is due to a lack of available sprawl space, with the average distance from the harbour front to the steep hills of Hong Kong Island at , much of it reclaimed land. This lack of space causes demand for dense, high-rise offices and housing. Thirty-six of the world's 100 tallest residential buildings are in Hong Kong. More people in Hong Kong live or work above the 14th floor than anywhere else on Earth, making it the world's most vertical city.

As a result of the lack of space and demand for construction, few older buildings remain, and the city is becoming a centre for modern architecture. The International Commerce Centre (ICC), at high, is the tallest building in Hong Kong and the third tallest in the world, by height to roof measurement. The tallest building prior to the ICC is Two International Finance Centre, at high. Other recognisable skyline features include the HSBC Headquarters Building, the triangular-topped Central Plaza with its pyramid-shaped spire, The Center with its night-time multi-coloured neon light show, and I. M. Pei's Bank of China Tower with its sharp, angular façade. According to the Emporis website, the city skyline has the biggest visual impact of all world cities. The oldest remaining historic structures including the Tsim Sha Tsui Clock Tower, the Central Police Station, and the remains of Kowloon Walled City were constructed during the 19th and early 20th centuries.

There are many development plans in place, including the construction of new government buildings, waterfront redevelopment in Central, and a series of projects in West Kowloon. More high-rise development is set to take place on the other side of Victoria Harbour in Kowloon, as the 1998 closure of the nearby Kai Tak Airport lifted strict height restrictions.

Transport

Hong Kong's transportation network is highly developed. Over 90% of daily travels (11 million) are on public transport, the highest such percentage in the world. Payment can be made using the Octopus card, a stored value system introduced by the Mass Transit Railway (MTR), which is widely accepted on railways, buses and ferries, and accepted like cash at other outlets.

The city's main railway company (MTR) was merged with the urban mass transit operator (KCRC) in 2007, creating a comprehensive rail network for the whole territory (also called MTR). This MTR rapid transit system has 152 stations, which serve 3.4 million people a day. Hong Kong Tramways, which has served the territory since 1904, covers the northern parts of Hong Kong Island.

{| |- | |} Hong Kong's bus service is franchised and run by private operators. Five privately owned companies provide franchised bus service across the territory, together operating more than 700 routes. The two largest, Kowloon Motor Bus provides 402 routes in Kowloon and New Territories; Citybus operates 154 routes on Hong Kong Island; both run cross-harbour services. Double-decker buses were introduced to Hong Kong in 1949, and are now almost exclusively used; single-decker buses remain in use for routes with lower demand or roads with lower load capacity. Public light buses serve most parts of Hong Kong, particularly areas where standard bus lines cannot reach or do not reach as frequently, quickly, or directly.

The Star Ferry service, founded in 1888, operates four lines across Victoria Harbour and provides scenic views of Hong Kong's skyline for its 53,000 daily passengers. It acquired iconic status following its use as a setting on ''The World of Suzie Wong''. Travel writer Ryan Levitt considered the main Tsim Sha Tsui to Central crossing one of the most picturesque in the world. Other ferry services are provided by operators serving outlying islands, new towns, Macau, and cities in mainland China. Hong Kong is famous for its junks traversing the harbour, and small kai-to ferries that serve remote coastal settlements. The Port of Hong Kong is a busy deepwater port, specialising in container shipping.

Hong Kong Island's steep, hilly terrain was initially served by sedan chairs. The Peak Tram, the first public transport system in Hong Kong, has provided vertical rail transport between Central and Victoria Peak since 1888. In Central and Western district, there is an extensive system of escalators and moving pavements, including the longest outdoor covered escalator system in the world, the Mid-Levels escalator.

Hong Kong International Airport is a leading air passenger gateway and logistics hub in Asia and one of the world's busiest airports in terms of international passenger and cargo movement, serving more than 47 million passengers and handling 3.74 million tonnes (4.12 million tons) of cargo in 2007. It replaced the overcrowded Kai Tak Airport in Kowloon in 1998, and has been rated as the world's best airport in a number of surveys. Over 85 airlines operate at the two-terminal airport and it is the primary hub of Cathay Pacific, Dragonair, Air Hong Kong, Hong Kong Airlines, and Hong Kong Express.

See also

Public holidays in Hong Kong

List of cities with most skyscrapers

Notes

Footnotes

References

Further reading

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External links

; Government

Discover Hong Kong – Official site of the Hong Kong Tourism Board

; Other

Hong Kong at Encyclopædia Britannica

HongKong at ''UCB Libraries GovPubs''

WikiSatellite view of Hong Kong at WikiMapia

Category:1997 establishments Category:Chinese-speaking countries and territories Category:English-speaking countries and territories Category:Former British colonies Category:Independent cities Category:Metropolitan areas of China Category:Pearl River Delta Category:Populated places established in 1842 Category:Port cities and towns in China Category:South China Sea Category:Special administrative regions of the People's Republic of China

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