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Agreement with Italy opens up more Cathay services to Rome

Meanwhile Ethiopian Airlines increases fifth freedom flights to eight per week

Cathay Pacific Airways is expected to increase its services to Rome early next year after officials yesterday revealed the details of a new bilateral air services deals with Italy and Ethiopia.

The governments of Italy and Hong Kong late last month forged an air services agreement that allowed both sides to increase the number of weekly services between the countries to 10. The previous number was eight.

'Cathay Pacific is pleased the government has secured additional traffic rights to Italy. It is something Cathay Pacific and Hong Kong have been trying to secure for a while,' the company said in a statement yesterday. 'Once we have completed the government formalities, we intend to increase our passenger services to a daily service to Rome, from our current five services per week.'

Cathay also flies a thrice weekly freighter service to Milan, where it picks up products such as high-end fashion goods for Hong Kong's trendy consumers.

Potential start-up Oasis Hong Kong Airlines has also applied for licences to fly to Milan, but those rights are being contested by Cathay.

Hong Kong Dragon Airlines said it would not contest the added flights won under the new bilateral agreement.

'We hope that both governments will continue discussion in respect of future opportunities to increase services to Milan and other cities in Italy,' Cathay said yesterday.

Italy's debt-ridden flag carrier Alitalia does not fly to Hong Kong.

Ethiopian Airlines was the big winner in the deal struck with Adis Ababa three weeks ago. Carriers from both countries increased by three to eight the number of weekly fifth freedom flights - commonly referred to as beyond rights - they were allowed.

No Hong Kong airline flies to Adis Ababa, but Ethiopian Airlines will use the new rights to transport passengers and cargo from Hong Kong to Bangkok.

Cathay Pacific announced yesterday that it carried 11.9 per cent more passengers last month than the same period last year. The carrier carried 1,306,116 passengers while load factor decreased by 1.3 percentage points year on year to 76.3 per cent. The company blamed the drop on the Muslim holiday of Ramadan, making less people travel.

Yield, the amount paid for every passenger kilometre flown, remained depressed as customers continued to book late in an environment of aggressive ticket pricing.

The carrier carried 103,962 tonnes of cargo last month, up 14.8 per cent year on year, boosted by an increase in transshipment cargo to and from Shanghai. The cargo load factor was 69.9 per cent, down 1.4 points, reflecting weak demand for exports from Europe and the US to Asia.

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