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Hong Kong and Chinese mainland signed an aviation agreement that adds 11 new routes and allows this city's biggest airline, Cathay Pacific Airways Ltd., to fly passengers to Shanghai, the government and airline said Monday.

The current pact covers 45 routes between Hong Kong and the mainland, and the new deal will add another 11 routes -- connecting Hong Kong with all the mainland's major cities, the Hong Kong government said in a statement, without naming the cities.

The agreement allows Cathay Pacific to fly passengers to Shanghai, which accounts for 35 percent of the passenger market and 68 percent of the cargo market between Hong Kong and the mainland, the carrier said in a statement.

The agreement is the latest step in Cathay's ambition to become the dominant carrier for international passengers flying to the Chinese mainland, the world's fastest growing aviation market.

Last month, Cathay acquired Hong Kong Dragon Airlines Ltd., or Dragonair, which has many routes to mainland cities, and doubled its stake in the mainland carrier Air China to 20 percent in a 8.22 billion Hong Kong dollar (US$1.05 billion) deal.

"We appreciate the tremendous efforts made by the mainland and Hong Kong authorities in expanding the air services opportunities," said Philip Chen, Cathay Pacific's chief executive. "We are also encouraged that the overall arrangement supports the trend toward a more liberalized regime between the mainland and Hong Kong."

Restrictions on capacity will be relaxed on most routes, the government statement said.

"Between winter 2006 and summer 2007, the capacity limits for passenger services on 35 routes will be lifted completely in two phases," the statement said. "Capacity for the remaining routes will be substantially increased."