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CR Airways has applied to boost the number of passengers it flies to mainland destinations  to capitalise on the travel boom over the Lunar New Year period.

It has applied to the Civil Aviation Department to boost its capacity to Tianjin and Jinan by wet-leasing a B737-800 from Hainan Airlines, deepening the carriers' relationship ahead of an anticipated merger.

'We are trying to look for a way to expand the fleet before the  Lunar New Year but we haven't had much luck,'  chief executive Kenneth Tong said, adding the application was submitted a month ago.

A spokesman for the department confirmed a decision was pending.

'If all the information we need is submitted, the process normally takes 60 days,' he said.

If approved for the wet-lease, which requires Hainan Air to provide the aircraft and crew, CR Airways would more than triple its capacity on the routes. It currently operates 50-seat CRJ-200 aircraft.

Hainan Air and CR Airways for the past few months have been fine-tuning a proposal to make Hainan Air group chairman Chen Feng the Hong Kong carrier's controlling shareholder. He became its top executive last month.

Opponents of the move insist any airline controlled by Mr Chen, a mainland citizen, does not fit the criteria for a Hong Kong-designated airline, exempting it from using local traffic rights. The government is seeking further information from CR Airways and legal advice before making its decision.

Viva Macau chief executive Andrew Pyne said whatever decision was rendered would have an impact in Macau, as Hong Kong and the former colony both have been awarded bilateral negotiating rights from foreign nations without being countries in their own right.

'What happens in Hong Kong impacts on how this special status continues to be viewed internationally,' Mr Pyne said.

'We are watching that closely and we have confidence that the authorities will act to protect the integrity of Hong Kong's air service arrangement. There is a lot at stake.'

A spokesman for the government said a locally designated airline must meet three criteria - it must be incorporated in Hong Kong, its principal place of business must be in Hong Kong, and it must be managed and controlled from Hong Kong.

It was conceivable that an airline controlled by mainland interests could be awarded Hong Kong designation provided it met those three criteria, he said.

'The ownership is not the primary consideration,' Mr Pyne said.



CR Airways eyes wet-lease to boost New Year flights