Cathay Pacific's call to boost Hong Kong as aviation hub echoed in ATLA testimony
Cathay Pacific Airways' belief that urgent action is needed to stop Hong Kong falling behind competing aviation hubs was echoed in testimony given at today's Air Transport Licensing Authority (ATLA) hearing into the airline's application for licences to serve Shanghai, Beijing and Xiamen.
"There are many other foreign carriers now trying to build up a network in China. Singapore Airlines has just got traffic rights for another 10 destinations in China. Malaysian also got another 10 destinations," Dragonair General Manager Planning and International Affairs Ms Olivia Lin told the Tribunal.
"What I am saying is everybody is eyeing up China to build up their network in China. We must do it before everyone else," said Ms Lin under cross-examination by Cathay Pacific counsel Mr Charles Haddon-Cave, QC.
Cathay Pacific believes that by flying back to the Chinese Mainland it will strengthen Hong Kong's position as a hub and as a gateway to the Mainland. Other airlines in Singapore, Thailand, Japan and Korea have recognised the potential of the China market and are developing connecting services at their own hubs.
Mr Haddon-Cave queried why Dragonair had not provided robust actual passenger traffic figures to Dragonair consultants who created a model to help justify Dragonair's claim that competition on the three Mainland routes would be greatly damaging to the airline.
"When you are planning it is better, is it not, to try to use actual traffic figures, if they are available?" Mr Haddon-Cave said. Ms Lin maintained that it was not necessary.
Dragonair objects to Cathay Pacific's application for licences to fly to Beijing, Shanghai and Xiamen. The hearing continues tomorrow.
