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A pandemic occurs when a new influenza virus, which people have no immunity to, emerges and starts spreading as easily as normal influenza.
While there is no firm evidence that H5N1 has acquired the ability to pass easily from person to person, concerns remain that the virus might develop this ability, or that it might mix with human flu viruses to create a new virus. It is this ability of avian influenza, to change and to mix, that has given rise to the fear of a new human flu pandemic.
For more information about pandemic flu, and the contingency plans in place to deal with such a pandemic, please see the Department of Health website which includes a section of Frequently asked questions about pandemic flu.