The following year saw CITIC Pacific's first real challenge from another mainland company. China National Aviation Corp. (CNAC), controlled by the mainland's civil aviation agency, which in turn had strong ties to the country's powerful military, announced its intention to establish a third Hong Kong airline. CNAC's ties with China's civil aviation agency would give it a decided advantage in winning important air routes to the mainland's major cities, possibly taking routes away from Dragonair. The move would directly threaten CITIC Pacific, which had been reducing its role in Cathay in favor of boosting its activities in Dragonair.