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Dragonair gets Bangkok go-ahead

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Hong Kong's second carrier can begin serving the Thai capital from next month

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Dragonair will be allowed to begin flying twice daily to Bangkok from next month, industry sources say. It is part of the Hong Kong government's progressive dismantling of its long-held 'one airline, one route' policy which discouraged competition.

Dragonair is controlled by China National Aviation Co (CNAC), which has central government links; its minority shareholders include the other Hong Kong-based passenger carrier, Cathay Pacific Airways, and its parent Swire Pacific.

Dragonair applied to the Economic Development and Labour Bureau last month for the right to operate services to five destinations - Bangkok, Manila, Seoul, Tokyo and Sydney - for which it won licences in October from the Air Transport Licensing Authority.

It is understood, however, that only in the case of Bangkok do the air-services agreements governing these routes permit Dragonair to launch services. Before flying the other four routes, Dragonair will have to wait for the bureau to negotiate extra capacity with the corresponding governments.

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A spokeswoman for the bureau confirmed the application had been lodged, but declined to confirm that Dragonair had been granted flights to Bangkok .

'The application is still being processed and no decision has been made,' she said.

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