City's smaller carriers remain concerned that the deal does little to lessen Cathay Pacific's and Dragonair's stranglehold
Mainland and Hong Kong officials yesterday unveiled the latest expansion of their air services arrangement, increasing local access to China's major commercial centres and paving the way for an end to Cathay Pacific Airways' 16-year absence from Shanghai.
The unprecedented deal will allow Hong Kong carriers to fly beyond Beijing and Shanghai to North America, according to people close to the agreement. But the city's smaller airlines remained concerned that it did little to lessen Cathay and Hong Kong Dragon Airlines' stranglehold on flights to the top mainland cities.
'The new arrangement would not only strengthen the aviation links between Hong Kong and the mainland, it will also enhance the competitiveness of Hong Kong International Airport and strengthen Hong Kong's status as an international and regional aviation centre,' Stephen Ip Shu-kwan, Secretary for Economic Development and Labour said.
The number of daily passenger flights to Shanghai and Beijing, which account for 60 per cent of travellers and 85 per cent of cargo volumes between the mainland and Hong Kong, will increase by two by next year's summer schedule to 18 and 12, respectively.
However, carriers will no longer be restricted in the type of aircraft they use, substantially expanding their seating capacity.
