Andrzej Jeziorski/SINGAPORE
Hong Kong's Dragonair will compete for the first time with Cathay Pacific and Air Hong Kong on intercontinental cargo routes when it launches services to Europe in July.
The Hong Kong air transport licensing authority has approved the Dragonair application to operate all-cargo services from Hong Kong to Amsterdam and Manchester. Hong Kong Government approval for the routes, which will be operated via Dubai, is pending.
Atlas Air will fly the services with a Boeing 747-200 freighter under a wet-lease agreement. Dragonair is expected to purchase the 747 eventually, and says it is considering building up its freighter fleet to five aircraft within three to five years.
The airline has also applied for approval to operate cargo services to destinations in North America, Japan and North-East and South-East Asia. Until now, Dragonair's network has predominantly served mainland China, where rival Cathay does not operate. Cathay has a small shareholding in its local rival, which has been reduced from a 43% stake since handover to China.
The company says it has been "looking at entering the [dedicated] freighter market for some time based on the growth potential of the cargo market and the excellent performance of existing cargo operations. The application for licences is another step in this process. As with any airline, we do not expect to fly to all the points to which we hold a licence."
One Dragonair source says that the airline will be "competing with Cathay Pacific and its subsidiary Air Hong Kong on these routes". Up to now, competition between the carriers has been ruled out by a government-imposed "one-airline, one route" policy, which the source says is "getting more liberalised".
Cathay's cargo arm operates a fleet of four 747-200 freighters and two -400Fs (plus two on order) on its worldwide cargo network, while Air Hong Kong has three 747-200Fs.
Source: Flight International
