The new Hong Kong-China air services arrangement opens up the market to more airlines from each side and expands capacity limits.
Dragonair held most of the Chinese passenger and cargo traffic rights available to Hong Kong-based airlines under the previous arrangement, while Cathay Pacific had rights to the remaining handful, which enabled it to offer only thrice-weekly passenger services to Beijing.
Under the new accord an unlimited number of airlines may operate between the two sides, while the number of routes that allow dual designation will be gradually increased, eventually covering all routes by late 2006. Passenger capacity is set to increase by a third, while capacity for freighter services will double.
Source: Flight International
