AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

China and Macau have agreed a new aviation deal that will see more flights between mainland China and the tourist and gambling resort.

Macau will now be allowed to fly to a further six mainland destinations and to double its flights from 244 to 539. The move comes as Australian low-cost carrier Virgin Blue looks to set up a Macau-based airline and with the extra flight allowance this looks more likely.

Air Macau, the only Macau-based airline currently operating, said that it is in talks with Virgin Blue over low-cost services but declined to reveal any details.

Despite the new deal China refused to allow foreign airlines to fly to Chinese mainland destinations through Macau and major cities such as Beijing will not be open to Macau-based airlines until 2006, reports The Associated Press.

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