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Following is the speech by the Secretary for Economic Development and Labour, Mr Stephen Ip at the cocktail reception for the Cathay Pacific Airways' launch of freighter services to Milan (English only):

Mr. Philip Chen, Mr. Bocchi, Ladies and Gentlemen,

It gives me great pleasure to be with you this afternoon to celebrate the launching of Cathay Pacific's freighter service to Milan.

Cathay Pacific has chosen a very good time to launch this new freighter service as it coincides with a very encouraging upsurge of air cargo traffic at the Hong Kong International Airport (HKIA). In the first six months this year, the increase amounted to 16.5% over the same period last year. The increase for the month of June alone over the same month last year was even more impressive, at 25.4%.

Whilst we are very pleased with this growth trend, we are also mindful of the competitive challenge Hong Kong faces as other airports in the region develop. To maintain and further enhance our position as an international and regional aviation centre, we need to increase our competitive advantages by further developing the breadth and depth of our aviation service network. With over 3,800 flights to about 130 destinations every week, the HKIA now compares favourably with many other major airports as a hub. Building on this very good foundation, we will continue to expand Hong Kong's air services network by firmly and proactively implementing our policy of progressive liberalization of our air services regime. Of course, we also need investment from premier airlines like Cathay Pacific to invest and expand their services.

A world-class airport is also essential to the development of Hong Kong as an international and regional aviation centre. In partnership with the Airport Authority, we will continue to improve the facilities of the HKIA and strengthen its connectivity with the Pearl River Delta by developing multi-modal transport links. In fact, the high standard of our airport's existing operation and facilities is widely acclaimed by the international community. In two independent surveys conducted by an airport and aviation research group, the HKIA was voted the "Airport of the Year" for two consecutive years in 2001 and 2002. Earlier this year, the HKIA was also named Cargo Airport of the Year by a leading international air cargo trade publication.

Apart from adding another destination to Hong Kong's air services network, Cathay Pacific's new service to Milan will also contribute towards promoting economic and trade links between Hong Kong and Italy. I wish this new service every success and look forward to the development of closer bilateral ties between Hong Kong and Italy.

Thank you.

End/Monday, July 29, 2002

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