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Following is the transcript (English portion) of a media session on shareholding realignments involving Cathay Pacific and Dragonair by the Secretary for Economic Development and Labour, Mr Stephen Ip, today (June 9) :
Reporters: бн seems that the Government has no objection to the realignment, do you agree?
Secretary for Economic Development and Labour: We don't see any objection to the shareholding realignments. We believe that it would help strengthen Hong Kong's role as an aviation hub because both Cathay Pacific and Dragonair can make the best use of their network. In the case of Dragonair, it has a very good Mainland network. In the case of Cathay Pacific, of course it has a very good international network. The shareholding realignments will help combine the strength of both companies. We believe that it will also result in increase in synergy and also help to enhance the efficiency of both companies. This should benefit the travelling public who should be able to have more choices. It should be more convenient for them to travel from the Mainland through Hong Kong and then through Cathay Pacific's flights to many destinations all the world.
Reporter: Are you concerned that these companies may monopolise the market? Do you think there will be a fare rise in air tickets? How about staff issues?
Secretary for Economic Development and Labour: I think they have to compete with other airlines, whether it's foreign airlines or Mainland airlines. There is very keen competition in the aviation sector at the moment. Despite the shareholding realignments, it is essential for both companies to continue to compete with other airlines. I believe that the shareholding realignments would create synergy and help enhance efficiency of both companies. There should be room for the lowering of airfares on certain routes. But of course, this is the commercial decision for both airlines.
Regarding staff issues, if you ask me, of course I do not like to see any loss of jobs. But ultimately staff matters are for the companies to decide. But I do hope to see that they would continue to spread their business. I do hope that they would continue to buy aircrafts. So they would require, for example, more cabin crews.
(Please also refer to the Chinese portion)
Ends/Friday, June 9, 2006
Issued at HKT 15:27
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