Qantas, Cathay Pacific make deal to launch new services<\/p>\n
Agence France-Presse, Sydney, Australia<\/p>\n
Tourism has received a major boost from an agreement between
\nHong Kong and Australia to allow a doubling of flights between
\nAustralian centers and the Special Administrative Region, the
\ngovernment said on Friday.<\/p>\n
The agreement, formalized late on Thursday, will mean an
\nimmediate increase in flights from 35 to 55 a week between the
\nHong Kong and Australian centers, with national carrier Qantas
\nAirways and Hong Kong-based Cathay Pacific Airways both due to
\nlaunch new services.<\/p>\n
Cathay will operate additional services to Sydney, Melbourne,
\nBrisbane and Perth while Qantas said it would look at developing
\nHong Kong as a transit and stop-over point as well as a
\ndestination in its own right.<\/p>\n
Qantas chief executive Geoff Dixon said the additional
\ncapacity meant the Australian airline could look at developing
\nnew services to London via Hong Kong, as well as additional
\nservices between Australia and Hong Kong.<\/p>\n
\"Under the new arrangements, Qantas has the potential to offer
\nfour Hong Kong-London flights immediately, increasing to seven
\nflights a week in 2006,\" he added.<\/p>\n
Qantas and Cathay will be able to further increase the number
\nof flights to 70 by March 2006. Another Hong Kong-based airline,
\nDragonair, will begin flights between Hong Kong and Sydney next
\nyear.<\/p>\n
The skies between regional Australia and Hong Kong have also
\nbeen opened up, paving the way for possible flights from centers
\nsuch as Broome and Cairns.<\/p>\n
Acting federal Transport Minister Ian Campbell said the
\nagreement would provide a boon to both business and tourist
\ntraffic, and may also push down prices through competition.<\/p>\n
\"This is an historic agreement and a huge leap forward for
\ntourism in Australia, opening wonderful opportunities for both
\nHong Kong and Australia,\" Campbell told reporters in Perth.<\/p>\n
\"It will allow more competition and better prices, and better
\naccess to a rapidly growing market for Australian carriers.\"<\/p>\n
Australian airlines will be able to use Hong Kong as a
\nstopover for direct flights to London, with four services a week
\navailable immediately, rising to seven by 2006.<\/p>\n
In the past, Australian carriers have not been able to operate
\nservices beyond Hong Kong to Britain.<\/p>\n
The agreement marked the end of years of negotiations which
\nCampbell said had, at times, been trying.<\/p>\n
\"There have been issues that have been hard to resolve, and
\nboth parties have walked away from the table in the past, but
\nlast night we shook hands and did a deal,\" Campbell said.<\/p>\n
He said he hoped the agreement would also re-ignite what had
\nbeen a stagnant market.<\/p>\n
Qantas has been flying to Hong Kong since 1949 and currently
\noperates 28 services a week from Sydney, Melbourne, Brisbane and
\nPerth, with its discount carrier Australian Airlines also flying
\nthree Cairns-Hong Kong services a week.<\/p>",
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