Tue, Jan 21, 2003 - Page 10 News List

Cathay prepares to enter dogfight with upstart Dragonair

AP , HONG KONG

Cathay Pacific Airways is heading toward a public fight with partner-turned-rival Dragonair over flights into the China mainland, a Cathay spokeswoman said yesterday.

Cathay, which is Hong Kong's biggest airline, does not now fly into the mainland but announced in August it wanted to offer services between Hong Kong and three Chinese cities: Shanghai, Beijing and Xiamen.

No. 2 Hong Kong carrier Dragonair has objected to Cathay's entry into the mainland market, where Dragonair earns the bulk of its profits. Cathay owns a minority stake in Dragonair but the two also became rivals on one front last year when Dragonair started flying Hong Kong-Taipei services in competition with Cathay and other airlines on that route.

Cathay spokeswoman Lisa Wong said Cathay was ready to take on Dragonair in a hearing set to open Thursday before Hong Kong's Air Transport Licensing Authority.

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