Airport Authority Hong Kong (AA) welcomed the newly announced Chinese mainland-Hong Kong Air Services Arrangement.

The AA said at a press release on Monday that the new arrangement will further strengthen Hong Kong International Airport's (HKIA) position as a leading international and regional aviation hub and the gateway of China.

With another 11 Chinese mainland cities having direct flights to Hong Kong, there are now 56 mainland cities that fly directly to the region, said sources with the General Administration of Civil Aviation of China.

The administration and Hong Kong Special Administrative Region government have established new air service arrangement, announced the administration.

David Pang, chief executive officer of the Airport Authority, said, "This arrangement will further promote people and cargo flows through Hong Kong and thereby enhance HKIA's competitiveness."

He said, the successful conclusion of the last arrangement for air traffic between Hong Kong and the Chinese mainland in September 2004 has generated tremendous traffic growth. In 2005, passenger traffic rose 13 percent, while cargo volume and flight frequency grew 35 percent and 20 percent, respectively.

Furthermore, Pang expressed gratitude to government for the newly concluded air services agreement with Mexico and the expanded arrangements with Japan and Brunei.

"We will continue to encourage more airlines to operate more destinations and flights from HKIA, hence providing greater variety and choice in product, service and price to the traveling public and business partners," added Pang.

"Increased air traffic will generate enormous business opportunities and economic value to the whole community. These new arrangements will further enhance HKIA's international aviation hub status," he said.

In a related development, Cathay Pacific Airways also expressed its welcome to the new Air Services Arrangement on Monday.

"We appreciate the tremendous efforts made by the mainland and Hong Kong authorities in expanding the air services opportunities," said Cathay Pacific Chief Executive Philip Chen.

The airline has applied to the HKSAR government requesting an allocation of rights to re-launch passenger flights to Shanghai, provide additional services to Beijing, and to increase all-cargo operations to the mainland, tentatively in the fourth quarter of this year.

In addition, Dragon Air also expressed its welcome to the new arrangement, saying the new arrangement would bring more opportunities for Hong Kong airlines.

(Xinhua News Agency July 4, 2006)