Hong Kong and Taiwan are ready to sign a new civil aviation agreement that is expected to increase daily flights between the two places. It is the first deal between them since the handover in 1997.
The travel industry hopes the deal will help Hong Kong to see off competition from mainland cities and attract more Taiwanese visitors.
Cathay Pacific Airway's chief executive John Slosar said last week that the airline was interested in one or two more daily flights in addition to the current 108 round-trip flights.
The deal comes after protracted talks which have seen the two sides overcome long-standing political obstacles. The existing agreement, which regulates the routes and number of flights between Hong Kong and Taiwan, was first signed in 1996 when the city was a British colony. It has been extended eight times since.
Cross-strait ties have eased since Ma Ying-jeou became Taiwan's president in 2008, and Taiwanese travellers now enjoy more direct cross-strait flights. Hong Kong faces competition for mainlanders, with Taiwan receiving individual travellers from across the strait next month.
Hong Kong and Taiwan wanted to upgrade the old agreement, but political sensitivities limited official contact after the handover and negotiations started only last year.