Growing investments in the resource-rich country and tourists' interest boosts demand. Li Tao reports.

Mongolian Airlines Group, a full service domestic and international carrier, aims to extend its presence both in the region and across the globe rapidly in the coming years, as investment in its rich natural resources and the increasingly mature tourism sector have boosted demand.

Founded in September 2011, the private carrier commenced services three months later connecting eight domestic destinations. It launched international operations in mid-2012 using Airbus A319s. Hong Kong was listed among its first batch of international destinations.

General manager of Hong Kong Branch Badral Erdenebaatar says the Hong Kong-Ulan Bator service has had a good response from both Mongolians and international travelers as inbound and outbound business and tourism has been growing apace.

With the growing demand for natural resources, the resource-rich country, which holds the second-largest copper and the third-largest coal reserves in the world, has been under international investors' spotlight.

Moreover, air transportation is vital for landlocked Mongolia and there will always be demand for the airline's services.

A number of Mongolian companies have already listed or are considering an initial public offering in Hong Kong as it is the top choice for raising capital for natural resources companies. Given the huge demand for natural resources on the mainland and the geographical proximity, Mongolian companies will be attractive to Hong Kong based investors, it is hoped.

Growing business connections between Mongolia and Hong Kong have also boosted demand for business flights between the two economies. Hong Kong serves as a good transit point for travelers to and from Mongolia, says Erdenebaatar.

Apart from business travelers, the maturing tourism facilities in Mongolia have also attracted an increasing number of visitors from Hong Kong to the country's famed grasslands, snowcapped mountains and dramatic gorges and lakes.

Mongolian Airlines Group operates three weekly flights between Ulan Bator and Hong Kong during the summer when the weather and temperature are congenial for travel.

The group operates two weekly flights between the two cities in winter, as Mongolians are keen on traveling abroad to some warmer places such as southeastern Asian countries, says Erdenebaatar, adding that Hong Kong is also one of the most favored destinations.

Hong Kong's visa-free policy for Mongolian citizens has helped boost exchanges.

Mongolian Airlines Group boasts it has been able to meet industry standards within a relatively short period since the establishment of the company.

The group has acquired two 50-seater Fokker-50 type aircraft manufactured in the Netherlands for domestic routes to meet growing demand. It is also in the process of acquiring Airbus A319s.

In April, 2012, the carrier had its inaugural international flight to Haneda airport in Tokyo and began operating services three times a week starting July 2012.

Erdenebaatar says the carrier will also introduce the wide body aircraft Airbus A330 for long-haul routes. It is considering plans for flights to Singapore or London too.

It already has firm plans to add flights to Chinese destinations. As recently as on 3 Jan 2013, it made its maiden Ulan-Bator-Shanghai Pudong flight. The new route will be a regular twice weekly operation from Jan 17, according to the company.

Shanghai, as China's economic powerhouse, is one of the most favored destinations for Mongolians.

Shanghai's Pudong Airport also serves as a convenient transit point for Mongolian passengers to other international destinations, says Erdenebaatar, adding that the growing number of tourist groups from Shanghai also add to the carrier's business.

(HK Edition 01/11/2013 page8)