Qantas' Hong Kong capacity increase underscores city's importance to pan-Asian strategies

Qantas will increase capacity from Jan-2012 on its Sydney-Hong Kong service despite the route soon losing traffic as onward passengers to London are forced to transit through Singapore after the Hong Kong-London service ends in Mar-2012. The increase shows the emerging relevance Hong Kong, and its access to mainland China, has to Australia as Cathay Pacific increases competition and Hong Kong Airlines looks to enter the market. Hong Kong also has strategic relevance as a low-cost carrier hub for Jetstar or any other pan-Asian airline - if local incumbent Cathay Pacific loses its fight to keep LCCs out from its home turf.