Cathay Pacific is urging the Hong Kong government to renegotiate capacity to Australia after hitting the bilateral ceiling of 70 services a week.

Cathay chief operating officer Ivan Chu said the airline, which flies to six Australian cities, had used up its traffic rights and would like more for potential additional freight and passenger services. Mr Chu said he understood air rights discussions would be held soon. He said Hong Kong remained an important transit point to China from Australia and subsidiary Dragonair offered an extensive network into the world’s most populous nation. While acknowledging the Australian market was “very competitive”, with an increasing number of direct flights from China, he said Cathay was differently positioned with the right frequencies, as well as its premium service and product. Asked about Jetstar Hong Kong, Mr Chu said the airline still had to meet Hong Kong’s principal place of business requirements, and that Cathay would take a position when details were known.