The Government has approved Dragonair's application to launch cargo services to Dubai, Amsterdam and Manchester, deviating for the first time from its 'one route, one airline' policy. Dragonair, 43 per cent-owned by China National Aviation Co, will be able to compete directly with former parent Cathay Pacific Airways for the first time in more than a decade. Cathay Pacific operates all cargo and passenger services to Dubai, and offers passenger services to Amsterdam and Manchester. Air Hong Kong, 75 per cent-owned by Cathay, operates all cargo services to Dubai and Manchester. 'The introduction of all cargo services by Dragonair on these three routes would provide additional choice to consumers and enhance competition in the market,' a spokesman for the Economic Services Bureau said. The announcement signalled the Government's intention to further deregulate, possibly allowing Dragonair on to many of the lucrative routes dominated by Cathay. Dragonair has also applied for permission to launch all cargo services to cities in the United States, Japan, Taiwan, Malaysia, Thailand, India and Europe. However, the Government indicated the announcement did not mean the 'one route, one airline' policy would be scrapped altogether.