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The Economic Services Bureau (ESB) announced today (July 21) that it has approved Hong Kong Dragon Airlines Ltd (Dragonair)'s application for designation to operate all-cargo services to Dubai, Amsterdam and Manchester.

"The introduction of all-cargo services by Dragonair on these three routes would provide additional choice to consumers and enhance competition in the market. This would help the further development of Hong Kong as an international and regional air cargo hub," an ESB spokesman said.

At present, two other Hong Kong airlines are operating services on these three routes. Cathay Pacific Airways operates all-cargo and passenger services to Dubai, and passenger services to Amsterdam and Manchester. Air Hong Kong operates all-cargo services to both Dubai and Manchester.

Under Hong Kong's "one route, one airline" policy, there is adequate flexibility for the Government to designate more than one Hong Kong airline to operate services on a route in appropriate circumstances, such as :

(a) where it is judged that more competition is needed in the public interest and the traffic is sufficient to sustain substantial operations by more than one Hong Kong airlines in addition to the operations of foreign airlines;

(b) where the airline that has been designated for a route chooses not to or has ceased to serve that route; or

(c) where the services provided by the airline which applies for designation are different from those provided by the existing designated airline on that route.

In approving Dragonair's application for designation, the Government has exercised such flexibility under the policy.

The ESB has notified the three Governments concerned of the designation of Dragonair under the respective bilateral Air Services Agreements.

End/Friday, July 21, 2000

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