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Cathay Pacific

Varig flies to HK - and profit

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SCMP Reporter

VARIG Airlines, Brazil's national carrier, invested US$1.5 million in promoting the January 17 launch of direct flights between Hong Kong and Rio de Janeiro. One third was spent in the territory, the remainder across South America.

By as early as the end of the year, according to Rino Vitale, Varig's area general manager, the route should start to show a profit.

''A new route always takes time to establish itself, but we are very happy with progress so far,'' Mr Vitale said.

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''Even in the first six months we have been close to a break-even figure, with a passenger load factor of just over 50 per cent, and the 20-tonne cargo holds have been absolutely packed on each flight.

''In the longer term, we are very confident of the success of the service because of the bilateral agreements we have set up with other carriers in the region.

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''Cathay Pacific will prove an ideal partner in the region, with the inter-line agreement allowing one ticket to cover two stages of a journey travelling on two different airlines.'' Varig also has associations with Singapore Airlines, Thai Airways, China Airlines, and the mainland's Air China.

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