Hong Kong will begin feeling the effects of lost business as direct weekend flights between Taiwan and the mainland begin this week.
Chinese and Taiwan airlines will benefit by not having to stop at Hong Kong or Macau, as was required for the last 10 years, although they will still have to pass through Hong Kong or Macau airspace.
On June 13, Beijing and Taipei signed a deal to launch the first regular weekend flights since 1949.
Analysts estimate that in the long term, unlimited direct flights would take nearly a 10th off Cathay Pacific's bottom line. The Hong Kong-based carrier took a large portion of the business by flying passengers on the roundabout route between China and the island of Taiwan.
However, this week's deal is limited to a small number of direct lights on weekends, so its real impact will not be felt for some time.
CargonewsAsia
Login
