Hong Kong, Aug 15: Hong Kong's number two airline, Dragonair, said today it has dropped efforts to keep partner-turned-rival Cathay Pacific Airways from flying into mainland China - where Dragonair generates most of its revenues. Dragonair spokeswoman Bevis Yiu said her company had decided not to appeal a ruling by the air transport licensing authority in April that allowed Cathay Pacific to fly to the mainland cities of Beijing, Shanghai and Xiamen.
Those routes are the backbone of Dragonair's business and it worries that competition from Cathay, a part owner of Dragonair, will cost it millions of dollars. For years, Dragonair has been the only Hong Kong-based carrier to serve the mainland and it fought hard against Cathay when the larger airline sought permission to serve those routes earlier this year.
Dragonair lost when authorities said Cathay could fly to all three cities, though not as frequently as it wanted. Yiu declined to say why Dragonair has decided to drop its appeal. Cathay Pacific said today it is pressing ahead with its plans and seeking landing slots with Beijing airport authorities. It is not certain when Cathay will start flying into China, however.
Cathay has not flown into mainland China since ceding its routes to Dragonair in the early 1990s. Bureau Report