The Hong Kong - Taiwan flight rights was just revised in late Jun 2002, with Dragonair granted right to operate Hong Kong - Taipei route that is already operated by another Hong Kong-based airline Cathay Pacific. This makes it the 1st airline route operated by more than one Hong Kong-based operator, hence breaking the policy of 'only one Hong Kong-based carrier for any airline route to Hong Kong'.

This is good for passengers as they have more choices & hence lower airline fare.

But I don't think Dragonair would succeed in the airline war because Dragonair has much lower standard of service, such as the lack of TV in all cabins, the use of 6-abreast 60" seat pitch First Class on A330 compared to 4-abreast 80" seat pitch First Class of Cathay Pacific, the use of 7-abreast 40" seat pitch Business Class on A330 compared to 6-abreast 50-60" seat pitch Business Class of Cathay Pacific.

So I think Dragonair should greatly improve its inflight service to Cathay Pacific level if it is to be more attractive, and hence enabling it to operate more routes served by Cathay Pacific.