A review of Hong Kong's air services arrangement with the mainland is expected to be signed later this month, with more flights to Shanghai on offer for local carriers. Industry sources said talks between the Hong Kong government and the General Administration for Civil Aviation (CAAC), China's civil aviation regulator, were still ongoing. But an amendment to the current arrangement, concluded in early-2000, could be signed around March 20. The present arrangement governing air services is expected to be largely unchanged, although China-focused carrier Dragonair will benefit with the addition of two daily frequencies to Shanghai. Officials attached to the air services negotiation team of the Economic Development and Labour Bureau declined to comment, given that such negotiations were confidential. Dragonair chief executive Stanley Hui Hon-chung said he also could not comment on government negotiations. But Mr Hui acknowledged that Dragonair was planning to increase Hong Kong to Shanghai services by two, to 10 flights per day, in its spring/summer schedule which begins at the end of this month. 'That's our plan, but it's always subject to discussions between Hong Kong and Beijing,' Mr Hui said. 'Dragonair recognises that there is demand on the Shanghai route and we will do everything we can to anticipate and fill that demand,' he added. Sources said the labour bureau could officially reveal the extent of its negotiations with the CAAC to Legco in response to a question to be raised by legislator Eric Li Ka-cheung, who represents the accountancy constituency, on March 19. Mr Li's question, which was expected to be published in Legco's official question list released today, raises the issue of how Hong Kong airlines can be assisted in participating in the airline business in the mainland market. He said the question had 'nothing to do with air services agreements' and was being raised as there was 'a lot of interest in the topic of China and how to do business' on the mainland. 'These topics haven't really been touched upon. [The question] touches on the airline business, but that's all,' he said. Another source close to the negotiations said the current talks were not believed to have taken into account Cathay Pacific Airways' application to the Air Transport Licensing Authority (Atla) for the right to offer services to three mainland cities - Beijing, Shanghai and Xiamen - given the timing of the review as set out in the agreement. 'As Cathay has not actually received an Atla licence yet, the current negotiations will not be able to take their application into account,' the source said. Sources said the current Hong Kong-China agreement allowed for an official review roughly every 12 months from its signing. An Atla tribunal into Cathay's application is expected to resume next week.