HONG KONG Dragon Airlines (Dragonair) is studying alternative routes for a new wide-body jet ordered for services to Taiwan because China still has not ratified an agreement allowing the carrier to fly there.
The move came as Cathay Pacific Airways and Taipei-based China Airlines (CAL) yesterday again extended an expired commercial agreement on flights between Hong Kong and Taiwan because of Beijing's refusal to approve their accord worked out last year.
Extended for the fifth time since last summer, the agreement will run to March 29 pending approval 'by the relevant authorities'. It is almost certain to be extended again next month because there are no signs China will give its blessing.
That means a twin-engined Airbus Industrie A330 leased recently by Dragonair - currently being painted in its red and white colours at the European manufacturing consortium's Toulouse headquarters and due for delivery in April - may have to be put to other uses.
Possibilities include adding capacity to one of the 21 existing routes or launching services to a new destination.
An airline spokesman would not say where else the carrier might fly should the agreement not be approved, but confirmed that contingency plans were being drawn up.
'We, of course, hope the agreement will be approved,' the spokesman said, 'but we are working on alternative arrangements to utilise the aircraft.' In December, Cathay and CAL initialled an accord allowing two new entrants to the lucrative routes between two Taiwanese cities and Hong Kong, previously operated as a duopoly.