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 company statement.

Under the agreement, GAC Hong Kong will be assured space allocation and competitive rates from Lufthansa Cargo, greatly increasing its weekly capacity and enhancing its ability to offer quality services at attractive rates.

In return, GAC will be committed to transporting airfreight on the airline, which is experiencing high growth, especially traffic to and from Asia.

The agreement was secured by GAC Hong Kong and GAC's Global Purchasing Unit in Thailand.

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

John Faulds, global purchasing manager for GAC airfreight said: "As Hong Kong serves as an important international transshipment centre for the southern China region, which is fast growing as a manufacturing centre, expanding our network in strategic locations with like-minded companies is an important business objective.

"Working with Lufthansa Cargo will enable our company to offer the best levels of service to our customers," he said.