'Open skies' pact to benefit both HK, mainland.

(From Business Daily Update)

Author: The importance of the reopening of the Cathay Pacific service between Hong Kong and Beijing last December lies in the fact that it embodies the new principle that there should be two SAR operators on the route, says Peter Negline of JP Morgan. "Until recently, Hong Kong had a one-route, one-carrier policy," he points out. "More competition is good for the users of the airline services, whether passengers or freight. This will lead to a more buoyant market, resulting in better volumes for everyone. Volume is the biggest driver of revenue growth for airlines." For any aviation hub to maintain its position its capacity must grow, says …