NICHOLAS IONIDES / SINGAPORE
Cathay Pacific Airways has applied for permission to fly to mainland China again, after a more than 10-year absence, in a sign of a further easing of Hong Kong's longstanding "one-airline, one route" policy.
The carrier says an application was filed on 7 August with Hong Kong's Air Transport Licensing Authority. It is expected to be formally published soon, after which interested parties will be invited to comment.
The process is expected to be a lengthy one. After a licence is secured from local authorities, the Hong Kong government will have to negotiate with the government of China, which since 1997 has controlled Hong Kong but not its aviation regulatory system. Chinese carriers such as Air China, China Eastern Airlines and China Southern Airlines are expected to object to Cathay's return to China.
Cathay will not say where it wants to fly, but the obvious destinations are Beijing, Guangzhou, Shanghai and Xiamen.
Cathay flew to major Chinese destinations until 1990 when it bought into Dragonair, which was launched in 1985 as a competitor and now makes most of its money from China services. In the late 1980s the Hong Kong government introduced a one airline, one route policy that limits services on any route to one Hong Kong-based carrier.
Cathay still owns a minority stake in Dragonair, but the associate has been steadily forging its independence since Chinese interests took control in 1996.
The one airline, one route policy has been slowly eroded, starting two years ago when Dragonair launched dedicated freighter services to Europe via the Middle East to some of the same cities as Cathay.
The policy was further eased in July, after a new air services agreement was reached between Hong Kong and Taiwan that gave Dragonair passenger and cargo rights to serve the highly lucrative Hong Kong-Taipei route. Cathay had been the only Hong Kong carrier on the route for years.
Source: Flight International
