The Central Government has agreed to let another airline fly to the Chinese mainland from Macao, which could help the tourism-dependent region establish itself as a gateway for budget travel.

The new pact signed Wednesday allows a second airline to fly from Macao to the Chinese mainland, except for major cities of Beijing, Shanghai and Guangzhou.

Service to those cities would be opened in the summer of 2006, officials said at the signing ceremony.

The number of destinations Macao can serve in the mainland market has increased to 37 from 31, while the number of weekly passenger flights has been raised 82 percent to 539. Cargo flights will also double to 50 a week.

The agreement had ��paved the way for big expansion in the future,�� the Macao SAR Government said in a statement.

The government did not mention specific airlines, but Australian budget carrier Virgin Blue Holdings Ltd. has said it is exploring the possibility of operating a low-cost service out of Macao.

Air Macao, in which Hong Kong tycoon Stanley Ho holds a 14 percent stake, is the only Macao-based airline.

(Shenzhen Daily-Agencies)