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Old June 9th, 2006, 04:38 AM   #1621
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More update: analysts suggested that Cathay may get 5th freedom rights from China, reported by HKStandard....
http://www.thestandard.com.hk/news_d...390&con_type=1

The AP reports thus: "Cathay said that Dragonair will keep its own brand for six years as part of the deal."
http://www.chron.com/disp/story.mpl/...s/3953115.html
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Old June 9th, 2006, 12:00 PM   #1622
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Official Cathay Pacific press release:
http://www.cathaypacific.com/intl/ab...141126,00.html
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Old June 9th, 2006, 02:57 PM   #1623
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From news.gov.hk:
Cathay-Dragonair deal welcomed
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Old June 9th, 2006, 05:02 PM   #1624
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Cathay-Dragonair deal to strengthen HK as aviation hub

HONG KONG, June 9 (Xinhua) -- Hong Kong Secretary for Economic Development and Labor Stephen Ip Friday welcomed the shareholding realignments involving Cathay Pacific and Dragonair, by saying that the move will strengthen Hong Kong's role as an aviation hub.

Combining the strength of both companies will enhance their efficiency, IP said, adding "This should benefit the traveling public who should be able to have more choices, and it should be more convenient for them to travel from the Chinese mainland through Hong Kong and then through Cathay Pacific's flights to many destinations all over the world."

When questioned whether the move was monopolization, Ip said, " they have to compete with other airlines, whether foreign or Mainland airlines. There is very keen competition in the aviation sector. Despite the shareholding realignments, it is essential for both companies to continue to compete with other airlines."

He said that he did not foresee any job cuts, and that staff matters are for the companies to decide.

"But I do hope they will continue to spread their business. I do hope that they will continue to buy aircraft. So they would require, for example, more cabin crews," he said.
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Old June 10th, 2006, 04:20 PM   #1625
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Why isn't there a ferry service from Central or TST to the airport?
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Old June 10th, 2006, 05:26 PM   #1626
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Quote:
Originally Posted by hkia
Why isn't there a ferry service from Central or TST to the airport?
Why ferry? You have efficient Airport Underground service and Airbus service like all large cities around the world.
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Old June 10th, 2006, 08:51 PM   #1627
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The ferries serve areas that are not well covered by the existing rail and bus network, such as Tuen Mun, Macau, and nearby mainland cities.
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Old June 10th, 2006, 08:53 PM   #1628
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Quote:
Originally Posted by hkia
Why isn't there a ferry service from Central or TST to the airport?
I think it's pointless since the airport is well connected with road, rail and bus
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Old June 10th, 2006, 10:15 PM   #1629
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HK PRESS: CNAC Holder Held Up Dragonair Buyout Talks
10 June 2006

HONG KONG (Dow Jones)-- Cathay Pacific Airways Ltd.'s (0293.HK) last 96 hours of negotiations on buying out affiliate Hong Kong Dragon Airlines Ltd. were stalled at the last minute when a minority shareholder of China National Aviation Co. Ltd. (1110.HK) threatened to veto the proposal, the Hong Kong Economic Times reported Saturday.

Quoting unnamed sources, the paper said Air China Ltd. (0753.HK), which owns 68% of CNAC, originally had no plans to take CNAC private.

But it later succumbed to pressure from Dragonair's founder P.K. Chao and agreed to take CNAC private at HK$2.80 per share.

CNAC said in a statement Friday that On Ling Investment, which owns a 9.75 percent stake in CNAC, said it would agree to vote in favor of selling CNAC's stake in Dragonair at an upcoming shareholders' meeting, providing Air China agreed to take CNAC private on the basis of HK$2.80 a share.

Cathay agreed to pay HK$8.22 billion in cash and stock to Dragonair's shareholders for a majority stake it doesn't already own, thus making it a dominant airline in China.

The takeover was closely watched, with trading in the Hong Kong-listed shares of all five companies involved in the talks - Cathay, Air China, Swire Pacific Ltd. (0019.HK), CNAC and CITIC Pacific Ltd. (0267.HK) - suspended since Monday after a newspaper reported on the takeover bid.

Cathay called a press conference at 1430 GMT Thursday, but it canceled it with no explanation.

Economic Times said the deal was only struck between 1430 and 1500 GMT Thursday.

Both Cathay Pacific and CNAC did not answer phone calls Saturday requesting comment.

Newspaper Web site: http://www.hket.com
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Old June 10th, 2006, 10:16 PM   #1630
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Long-haul passenger Air China may want upgrade from economy
10 June 2006
South China Morning Post

COMFORT WAS ONE of the key issues at yesterday's press conference on Cathay Pacific Airways' co-operation with Air China. The issue isn't the seat pitch in economy class but the level of Air China's ownership in Cathay.

Air China, together with its subsidiary China National Aviation Co (CNAC), will hold 17.5 per cent of Cathay after the deal, leaving Britain's Swire Group, the airline's founder, firmly in control. The question for Air China is whether that situation can last.

For now, China's flag carrier professes to be happy with the new status quo. "We are sitting here very comfortably," says Air China chairman Li Jiaxing.

One reason is the financial drain the deal will impose on highly geared Air China. The $4 billion share sale proceeds and $108 million dividend from Cathay won't cover the $5.8 billion it must pay to boost its Cathay stake.

More importantly, while the deal may ease some of the pressure it faces from domestic rivals China Eastern Airlines and China Southern Airlines, which must now cope with a far stronger Cathay, it does nothing to bolster Air China's flagging international competitiveness.

Long haul and international flights have always been the weakest link at mainland carriers. That's hardly in China's interest as it faces pressure to award more traffic rights to foreign carriers in coming trade talks.

Since Beijing will not want to see the rapidly expanding international traffic from China go mostly to foreign operators, it's imperative for it to see Air China strengthen its international operations.

Granted, the deal does include the promise of a new operating agreement between Air China and Cathay that will include reciprocal sales representation for passenger services in Greater China, along with code share and profit-sharing arrangements for all passenger services between Hong Kong and the mainland.

But that agreement is limited largely to Greater China and thus will have only a modest impact on Air China's international business. Indeed, earlier co-operative agreements between the two carriers have so far borne little fruit. And it's not clear that the tacit endorsement of Air China inherent in Cathay doubling its stake to 20 per cent will have much impact on the way potential passengers view the airline.

Small wonder, then, that the talk of Air China raising its stake further or even trying to take over Cathay refuses to die down. That's despite repeated denials by both parties. "We have no intention of reducing our interest in Cathay. We are committed to aviation," says Swire chairman Christopher Pratt.

Nevertheless, should Air China eventually seek to gain control of Cathay, its best option will be to pay for the deal by giving Swire new shares plus some cash. That will allow the mainland carrier to gain immediate access to the expertise and infrastructure of a highly regarded international carrier while giving Swire a bigger slice of the world's fastest-growing civil aviation market.

Of course, there are hurdles, the prime one being that Air China simply isn't big enough to swallow Cathay whole. Its total market capitalisation is only 60 per cent that of Cathay. So control may come only by taking on debt the airline can ill afford to shoulder or by Beijing relinquishing majority control of its flagship.

With the reopening of the A-share market and the recent rebound in mainland stocks, it may be only a matter of time before Air China finds itself in a position where it can contemplate making a bid for full control. Whether it will take that bold step will depend on how well the partnership goes and perhaps more importantly, how other domestic carriers react to the partnership. Yesterday's deal is likely to trigger a restructuring of the mainland aviation sector with results that are still difficult to foretell.
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Old June 10th, 2006, 10:41 PM   #1631
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Ferry is such a waste of time. AEX is very great!
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Old June 12th, 2006, 02:32 AM   #1632
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天 空 之 城 ( 重 播 )
http://www.rthk.org.hk/rthk/tv/cityt.../20050801.html

香 港 經 濟 命 脈 的 國 際 機 場 , 啟 用 超 過 七 年 , 機 場 內 , 各 個 商 業 伙 伴 , 以 至 各 個 相 關 機 構 及 政 府 部 門 , 日 常 如 何 運 作 , 一 直 鮮 為 人 知 。

機 場 為 24 小 時 運 作 , 內 裡 的 資 源 、 交 通 , 以 致 通 訊 等 , 都 有 獨 特 的 一 套 運 作 模 式 , 四 萬 多 人 身 處 赤  角 內 , 可 以 話 自 給 自 足 , 儼 如 一 個 大 城 市 。

《 天 空 之 城 》 這 系 列 的 電 視 專 輯 , 正 是 希 望 讓 大 眾 了 解 機 場 內 , 包 括 貨 運 、出 入 境 安 全 、 飛 機 維 修 工 程 , 以 至 客 運 大 樓 等 各 範 疇 , 有 趣 以 及 鮮 為 人 知 的 一 面 。

節 目 於 2005 年 七 月 十 一 日 至 八 月 二 十 九 日 , 逢 星 期 一 凌 晨 零 時 三 十 五 分 亞 洲 電 視 本 港 台 播 映 。
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Old June 14th, 2006, 07:16 PM   #1633
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HK's Cathay Pacific acquisition of Dragonair changes competitive landscape-Fitch
14 June 2006

HONG KONG (XFN-ASIA) - Fitch Ratings said the recently-announced acquisition of Hong Kong Dragon Airlines Ltd (Dragonair) by Cathay Pacific Airways Ltd is expected to change the competitive landscape of Greater China's aviation market, especially for the lucrative routes between Hong Kong and mainland cities.

'A transaction of this nature has been long expected,' said Michael Wu, associate director of Asia Corporates at Fitch, adding that Cathay will gain meaningful access to the fast-growing mainland China market via the acquisition of Dragonair.

'Other benefits from the purchase include the optimization of routes arising from an integration of both airlines' existing networks, synergies from a larger scale of operations and closer ties between Cathay and Air China,' he said.

Fitch said Air China Ltd and Cathay will form a cross shareholding relationship, and together they will command a 60 pct share of lucrative mainland-Hong Kong routes.

Fitch said the two carriers are expected to work together closely and their respective competitive positions will be strengthened through the alliance.

'Other competing carriers, such as China Southern Airlines Ltd and China Eastern Airlines Ltd will be greatly disadvantaged by this deal,' added Eliza Liu, associate director of Asia Corporates in Beijing.

Cathay, Swire Pacific, Dragonair, Air China and CITIC Pacific said last Friday that they have entered into a conditional agreement to restructure the shareholdings of Dragonair, Cathay, and Air China.

Under the agreement, Cathay will acquire an 82 pct stake in Dragonair and a cross shareholding relationship between Cathay and Air China will be established.
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Old June 14th, 2006, 09:18 PM   #1634
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HK Air Cargo Terminals says Cathay-Dragonair deal may hurt airlines, cargo industry
12 June 2006

HONG KONG (AP) - Hong Kong Air Cargo Terminals Ltd., or Hactl, has said the merger between Cathay Pacific Airways Ltd. and Hong Kong Dragon Airlines Ltd. may hurt airlines, cargo terminal operators and freight forwarders.

Cathay Pacific, Hong Kong's largest airline, Friday announced plans to acquire Dragon Airlines for HK$8.22 billion (US$1.05 billion, €820 million). The announcement comes after the airline applied to the city's airport authority to build a dedicated air cargo facility at Hong Kong International Airport.

Hactl, which accounts for 80 percent of air cargo movement in Hong Kong, said Cathay Pacific and Dragonair's combined cargo volume makes up 40 percent of the airport's total.

"The merger of the two airlines if combined with cargo self-handling would there create a dominant, vertically-integrated air cargo operation," Hactl said in a statement late Sunday.

"Hactl believes that this development has the potential to negatively impact airlines, cargo terminal operators, freight forwarders and other participants in one of Hong Kong's key business sectors," it said.

The terminal operator said any decision by the airport authority regarding the new terminal will have long term consequences to the cargo handling and logistics industry.

"There must, therefore, be a process of full and open consultation with all stakeholders."

Cathay Pacific, which owns 10 percent of Hactl and is the operator's largest customer, earlier said it plans to build its own air cargo terminal because of high handling costs at Hactl. The airline said charges at Hactl are more than double what it pays on average across its system.

Hactl is 10 percent-owned by Cathay Pacific and 20 percent by its Cathay's parent company, Swire Group.
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Old June 15th, 2006, 05:46 AM   #1635
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Air cargo airlines see room for Hactl fee reduction
13 June 2006

Industry insiders reveal that in order to remain competitive, Hong Kong Air Cargo Terminals Ltd (Hactl) may need to reduce service charge which is times higher than airports in surrounding regions.

Air cargo airlines believe Hactl is currently charging service fees three times higher than what Guangzhou and Shenzhen are charging. Since the scope of service provided by Hactl in air cargo transit (aircraft-to-aircraft) is limited, some airlines believe it will be great if Hactl can lower the service fee. At present, about half of all air cargo handled at Hactl are cargo from Cathay Pacific Airways and Hong Kong Dragon Airlines (Dragonair).

Apple Daily News
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Old June 15th, 2006, 05:46 AM   #1636
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A terminal mistake for Hong Kong?
13 June 2006
South China Morning Post

In the near future, the Airport Authority will discuss a critical issue. The question at hand is whether to introduce more terminal capacity at Hong Kong International Airport - specifically, whether to approve a dedicated terminal for the use of one airline. At stake is the long-standing success of Hong Kong as the region's primary air-cargo hub.

Today, Chek Lap Kok is the dominant airport in the Pearl River Delta region - China's largest export and manufacturing centre. It handles nearly 90 per cent of the region's air cargo exports. However, there is increasing competition from other airports in the area - notably Guangzhou, Shenzhen and Macau.

Hong Kong's strategic advantages are the envy of the Asia-Pacific region and the world. The first is coverage: Chek Lap Kok covers three times the number of international destinations and has eight times more international flight frequencies than our nearest regional competitor. The second is speed: Chek Lap Kok has a much shorter transit time from factory to plane than its nearest competitor. Third, the airport has far superior service levels by every recorded industry standard. Finally, Chek Lap Kok has a system-wide cost advantage of 5 to 10 per cent over its nearest competitor.

There is a fundamental reason why Hong Kong has risen to become a worldwide benchmark in air-cargo handling. It is unique among major airports globally, in that it has a cargo-handling infrastructure centred on two major, common-user, terminals, operated by Hong Kong Air Cargo Terminals (Hactl) and Asia Airfreight Terminal (AAT).

Both terminals serve all airlines, and maintain a level-playing-field approach to providing services to airlines. At the majority of other international airports, most airlines are relegated to a secondary priority behind the local home carrier, or must operate out of a smaller terminal.

Together, Hactl and AAT have used their experience and autonomy to build the world's most advanced air-cargo handling terminals, through continuous investment of the right technologies at the right time. Hactl has won the Air Cargo Terminal of the Year Award (from Lloyds FTB Asia) for the past four consecutive years.

Maintaining the appropriate balance in cargo-terminal capacity has been the key to Chek Lap Kok's success. Currently, there is ample cargo-handling capacity at the airport. Since 2000, Hactl has expanded capacity by nearly 35 per cent while AAT is tripling its capacity. Based on Hactl's growth forecasts, only 75 per cent of the airport's total terminal capacity will be used by 2012, reaching 100 per cent by 2017.

The air-cargo industry is no different from any other business. When investment in excess resources is premature, there is waste in the short term and opportunity lost in the long term.

The final aspect of this issue focuses on a major shift in the airport's level-playing-field policy. If a dedicated terminal were to be granted to any single carrier, market stakeholders fear it would lead to undue dominance of that carrier. It would reap a cost advantage - no doubt, to the detriment of other carriers. If other airlines perceive they are being held back by favouritism towards a local airline, they may take their operations to other regional airports.

Is there truly a need for additional terminal capacity now? Will a dedicated terminal by a dominant airline be in the best interests of Chek Lap Kok? These are critical issues to which the Airport Authority board must give the deepest consideration, through dialogue with stakeholders of the air-cargo community in Hong Kong. If it decides to go ahead with such a terminal, the process must be open, transparent and conform to due process.Warren Bishop is the director of corporate development for Hong Kong Air Cargo Terminals
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Old June 15th, 2006, 05:47 AM   #1637
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Cathay raises heat on new cargo terminal idea
467 words
13 June 2006
Hong Kong Standard

Cathay Pacific Airways says cargo handling capabilities at Hong Kong International Airport will be stretched in three years despite a counter-claim by Hong Kong Air Cargo Terminals, or HACTL, the world's leading air cargo terminal operator, that it is able to meet demand for at least the next 11 years.

"The cargo market will get bigger and volume growth will maintain," chief executive Philip Chen Nan-lok said Monday.

The Airport Authority has scheduled a board meeting today to discuss an application by Cathay Pacific to build its own cargo terminal at Hong Kong International Airport that would be capable of handling four to five million tons of freight a year. A source said Cathay's application would be the top item on the agenda.

Cathay said in the current issue of its staff magazine that the carrier's cargo volume has reached the stage where it must operate its own terminal to keep costs down to a level at which it could compete with other hubs in the south China region.

"Figures show HACTL will be at full capacity by 2009, and we will be experiencing serious service degradation if we don't have a facility ready by then," said Cathay cargo director Ron Mathison.

However, HACTL marketing manager Warren Bishop told Bloomberg that HACTL, which operates the world's biggest air freight terminal in Hong Kong, can handle 3.5 million tons a year _ "enough capacity" until 2012. Bishop called on the government for a full public consultation process with all stakeholders before any new cargo terminal is awarded.

Cathay proposes to build its new cargo facility _ if approved _ in two stages. The first opening in 2009, with a capacity of between two and 2.5 million tons a year. Phase two would be completed as early as 2018. At present, Cathay contracts HACTL to handle its cargo.

Mathison complained that Cathay Cargo pays HACTL more than double what it pays on average across the system, and more than triple what is charged by several competing hubs in the region.

Swire Group, Cathay's controlling shareholder, directly owns 20 percent of HACTL and another 10 percent through Cathay. An industry source expects Jardine Pacific, which owns 25 percent of HACTL, to increase its stake if Cathay were to give up its investment.

Meanwhile, shares of Cathay Pacific climbed 0.72 percent Monday to HK$13.95, in the wake of the Dragonair deal.

Citigroup said in a report that it expects the Dragonair deal "is only phase one of an eventual merger between Air China and Cathay.

"For Air China to compete in a rapidly deregulating China market, they need a brand and Cathay will be the best in Greater China."
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Old June 15th, 2006, 05:56 PM   #1638
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14 June 2006
Best Airline - China for a 5th Consecutive Year
Dragonair Press Release

(HONG KONG) Dragonair has been voted Best Airline - China for a fifth consecutive year in the respected international Skytrax passenger survey.

The passenger survey was undertaken between September 2005 and May 2006, and measured more than 35 aspects of passenger satisfaction.

"This is a very great honour - one that each and every member of staff at Dragonair shares," said Chief Executive Officer Stanley Hui.

"On behalf of us all at Dragonair I would like to thank all those travellers who voted for us.

"We remain committed to providing the best possible travel experience to our customers, and will continue to provide the services that make Dragonair the airline of choice to the China Mainland."

With the launch of direct services to Shenyang in late March, Dragonair now operates passenger services to 32 Asia-Pacific destinations, including 23 in the China Mainland. It operates about 400 flights every week to cities in the Mainland, more than any other non-Mainland airline.

More than 13 million travellers voted in this year's Skytrax survey, making it the biggest poll of its kind in the world.
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Old June 16th, 2006, 08:10 AM   #1639
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Hactl announces May tonnage throughput
Corporate Press Release

(7th June 2006, Hong Kong) Hong Kong Air Cargo Terminals Limited (Hactl) announced today its air cargo tonnage throughput for May 2006. A total of 201,848 tonnes were handled in the month, an increase of 4.6% compared with the same month last year. Cumulative tonnage from January to May 2006 was 988,390 tonnes, up 6.2% compared with the same period last year.

Export volume in May 2006 registered a 5.1% growth on a year-on-year basis to 111,706 tonnes. Aggregate export volume for the first five months of 2006 was 549,933 tonnes, representing a year-on-year growth of 6.2%.

Import volume for May and for the first five months was 57,473 tonnes and 276,902 tonnes respectively, up 3.4% and 4.2% year-on-year for the respective periods. Total transshipment volume for the first five months was 161,555 tonnes, up 10.2% against the same period last year.

The summary of the import, export and transshipment volumes handled in May and cumulative figures from January to May 2006 is tabulated as follows :
http://www.hactl.com/en/mediactr/press20060607.htm
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Old June 17th, 2006, 05:41 PM   #1640
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Hong Kong Express Airways Announces Traffic Figures

Hong Kong, June 10, 2006

Hong Kong Express Airways today announced its passenger traffic figures for the period May 1st 2006 to May 31st 2006.

Hong Kong Express Airways flew 11,741 passengers in May – a drop approximately proportionate to the reduction in the number of flights operated to 310 from 348 in April 2006. Accordingly, passenger seat factor improved slightly increasing by a little over 0.8 percentage points to 49.8 per cent. The most popular route in May was between Hong Kong and Hangzhou. Peak travel occurred on May 25 when 360 people flew with Hong Kong Express.

Comments Hong Kong Express Airways Chief Executive Officer, Mr. Andrew Tse: “With the launch so far in June of charter services to Taichung and the forthcoming launch of direct scheduled services between Hong Kong and Chiang Mai on June 22nd, the summer holiday season looks to be shaping up nicely for us.”

Code:
	May 2006 	April 2006
Available Seat Kilometer (‘000) 	31,704 	35,297
Revenue Pax Kilometer (‘000) 	15,035 	15,241
No of flights operated 	310 	348
Notes to Editors:

Hong Kong Express:

Hong Kong Express is notable for its focus on the needs of business travellers – from its new Embraer 170 jets which offer the comfort of a well designed 2 + 2 single class cabin, through to its flight frequencies.

From its base at Hong Kong’s Chek Lap Kok airport, Hong Kong Express operates multiple daily services between Hong Kong and Mainland China. For further information, schedules and fares please visit: www.hongkongexpress.com or call Hong Kong Express reservations on +852 3151 1888.
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