To stay ahead, Hong Kong's aviation industry will continue to expand and upgrade facilities, and enhance operational efficiency to provide better services, Chief Secretary Rafael Hui says.

Officiating at a ceremony to mark the delivery of  Cathay Pacific Airways' 100th aircraft in Toulouse, France, Mr Hui noted the future was filled with challenges for the airline and Hong Kong. Emerging airports in the region present keen competition, challenging Hong Kong's status as an aviation hub.

It is that strength as an aviation centre that helps advance tourism, by bringing more visitors to the city. It has become the world's seventh most popular tourist destination, and the only single-city destination in the top 10.

"With the emphasis worldwide on speed and connectivity, a good aviation network supported by an efficient airport infrastructure is critical to the success of any economy," Mr Hui said.

He said the Government's respect for the market and its steadfast commitment to maintaining a level and open playing field for all had provided the environment for Cathay, like all other airliners, to build up its strength through decades of keen competition.

"In the absence of market protection or government subsidy that are quite common in other parts of the world, Cathay Pacific, like all other Hong Kong airlines, has thrived on its own efforts," he said, adding he was confident in the airline's future success.

Mr Hui also anticipated continued growth in passenger and cargo traffic at Hong Kong International Airport following increases of  9.7% and 10% in 2005.