GAC Hong Kong has signed a one-year capacity purchase agreement with Lufthansa Cargo for the movement of cargo between Hong Kong and Europe, according to a GAC communique.

Under the agreement, GAC Hong Kong is assured space allocation and competitive rates from Lufthansa Cargo, greatly increasing its weekly capacity and enhancing its ability to offer lower rates. In return, GAC is committed to transporting airfreight cargo on Lufthansa flights.

"We have been working closely with Lufthansa Cargo at a local and regional level," said GAC Hong Kong managing director Stuart Bowie. "This agreement represents significant progress in what is expected to be a productive partnership."

John Faulds, head of GAC's global purchasing unit in Thailand, which secured the deal, said: "As Hong Kong serves as an important international transshipment centre for southern China, which is fast growing as a manufacturing centre, expanding our network in strategic locations with like-minded companies is an important business objective."