MAINLAND aviation officials yesterday denied a Taiwanese report of a ground-breaking deal between two mainland carriers and Great China Airlines of Taiwan.
According to a report by the Taiwanese newspaper, The United Daily, Xiamen Airlines and China Southern recently signed a letter of intent with Great China Airline to form a joint venture airline.
The report did not specify how much the new airline would cost or how it would be formed.
Aviation sources in Hongkong said last night that if the report was true it would have a significant impact on the territory.
The source said Hongkong stands to lose an estimated two million passengers a year passing through Kai Tak once direct flights between Taiwan and China begin.
Last year China announced a major restructuring of its aviation industry and opened all airlines and airports to foreign investors.
Xiamen Airlines, which is 60 per cent owned by China Southern, has invested millions of dollars expanding its fleet of Boeing 737s for the day when direct flights begin.