Secretary for Economic Development & Labour Stephen Ip has welcomed the shareholding realignments involving Cathay Pacific and Dragonair, saying the move will strengthen Hong Kong's role as an aviation hub.

Mr Ip said combining the strength of both companies will enhance their efficiency.

"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 over the world," he said.

When questioned whether the move was monopolisation, Mr Ip said: "They have to compete with other airlines, whether foreign or Mainland airlines. There is very keen competition in the aviation sector. Despite the shareholding realignments, it is essential for both companies to continue to compete with other airlines."

He said he did not foresee any job cuts, adding that staff matters are for the companies to decide.