Hong Kong Airlines

Hong Kong Express to re-brand as LCC and switch B737s for A320s as Cathay stands clear of LCCs

Hong Kong is set to receive its first ever short-haul LCC in a move that will see the market further press Cathay Pacific to justify not having a LCC subsidiary. Hong Kong Airlines president Yang Jianhong stated Hong Kong Express Airways will be transformed into an (unnamed) LCC in Jul-2012 or Aug-2012, operating under its new low-cost model to cities in mainland China, South Korea, Japan and Southeast Asia. It will use the traffic rights of Hong Kong Express to Shanghai, Beijing, Singapore, Seoul, Kuala Lumpur, Osaka and Taipei, according to reports in the South China Morning Post.  

Mr Yang stated the new carrier will appoint a CEO with European LCC sector experience and will acquire 15 A320s over the next three to four years. Its current fleet of five B737-800s will be transferred to Hong Kong Airlines in 2012. The new LCC will pose a new challenge on lucrative routes from Hong Kong to Beijing, Shanghai and Taipei and opens the door for a pan-Asian carrier like AirAsia or Jetstar to become involved.

Qantas' Hong Kong capacity increase underscores city's importance to pan-Asian strategies

Qantas will increase capacity from Jan-2012 on its Sydney-Hong Kong service despite the route soon losing traffic as onward passengers to London are forced to transit through Singapore after the Hong Kong-London service ends in Mar-2012. The increase shows the emerging relevance Hong Kong, and its access to mainland China, has to Australia as Cathay Pacific increases competition and Hong Kong Airlines looks to enter the market. Hong Kong also has strategic relevance as a low-cost carrier hub for Jetstar or any other pan-Asian airline – if local incumbent Cathay Pacific loses its fight to keep LCCs out from its home turf.

Traffic rights limitation forces Hong Kong Airlines to delay Sydney and Melbourne services

A breakdown in negotiations between Australia and Hong Kong to increase traffic rights between the two countries will force Hong Kong Airlines to delay its planned Sydney and Melbourne services. The carrier, 45% owned by mainland China's Hainan Airlines, had planned to launch Hong Kong-Sydney services early next year and Hong Kong-Melbourne services approximately six months later.

Hong Kong Airlines plans A330 all-premium product for Hong Kong-London route

Hong Kong Airlines is preparing to enter the highly competitive but typically lucrative Hong Kong-London market next year with a unique all-premium service. London will be one of at least three new long-haul destinations for Hong Kong Airlines in 2012, along with Paris and Sydney, as the fast-growing carrier continues to rapidly expand its A330 fleet.

Skymark Airlines increases A380s orders to six as part of ambitious growth plans

Skymark Airlines placed an order for two more A380 aircraft at the Paris Air Show, bringing to six the number of A380s ordered by the Japanese LCC. The aircraft forms part of the carrier’s ambitious growth plans over the next few years which will move it away from the small domestic LCC model to a long-haul international carrier operating A380 equipment.