Pact signed for 11 Hong Kong-China routes

The Associated PressMONDAY, JULY 3, 2006

Hong Kong and mainland China signed an aviation agreement that adds 11 new routes and allows this region's biggest airline, Cathay Pacific Airways, to fly passengers to Shanghai, the government and airline said Monday.
The current pact covers 45 routes between Hong Kong and the mainland, and the new deal will connect Hong Kong with all the mainland's major cities, the Hong Kong government said, without identifying the cities.
The agreement allows Cathay Pacific to fly passengers to Shanghai, which accounts for 35 percent of the passenger market and 68 percent of the cargo market between Hong Kong and the mainland, the carrier said.
Last month, Cathay acquired Hong Kong Dragon Airlines, or Dragonair, which has many routes to mainland cities, and it doubled its stake in Air China to 20 percent in a deal worth 8.22 billion Hong Kong dollars, or $1.06 billion.
"We appreciate the tremendous efforts made by the mainland and Hong Kong authorities in expanding the air services opportunities," said Philip Chen, Cathay Pacific's chief executive. "We are also encouraged that the overall arrangement supports the trend toward a more liberalized regime between the mainland and Hong Kong."
Restrictions on capacity will be relaxed on most routes, the government statement said.