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Hong Kong Airlines

From Wikipedia, the free encyclopedia
Not to be confused with Air Hong Kong, HK Express, Hong Kong Airways, or Oasis Hong Kong Airlines.

IATA ICAO Call sign
HX CRK BAUHINIA
Founded28 March 2001; 23 years ago (2001-03-28)
(as CR Airways)
Commenced operations22 September 2006; 18 years ago (2006-09-22)
(as Hong Kong Airlines)
AOC #15
HubsHong Kong International Airport
Frequent-flyer programFortune Wings Club
SubsidiariesHong Kong Air Cargo
Fleet size34
Destinations40
Parent companyHainan Airlines[1][2]
HeadquartersHong Kong
Key people
Websitewww.hongkongairlines.com
Hong Kong Airlines
Chinese香港航空
Transcriptions
Standard Mandarin
Hanyu PinyinXiānggǎng Hángkōng

Hong Kong Airlines Limited (HKA), operating as Hong Kong Airlines (Chinese: 香港航空公司), is an airline based in Hong Kong, with its headquarters in the Tung Chung district and its main hub at Hong Kong International Airport. It was established in 2006 as a member of the HNA Group[needs update] and flies to 25 destinations across Asia–Pacific. The company slogan was changed from Fresh + very Hong Kong to Where Hong Kong Begins.[3][when?][importance?]

History

[edit]

2001–2006: Early years

[edit]
A CR Airways Boeing 737-800 in 2006
A Hong Kong Airlines Boeing 737-800 in 2007

Robert Yip (Chinese: 葉光), the chairman of China Rich Holdings, established CR Airways in Hong Kong on 28 March 2001.[4][5] The airline received its air operator's certificate (AOC) from the Hong Kong Civil Aviation Department (CAD) in 2002, with its first aircraft a Sikorsky S-76C+ helicopter, which could carry 12 passengers and fly at 285 kilometres per hour (177 mph). It was Hong Kong's third commercial helicopter operator and the first helicopter operator to receive an AOC since Hong Kong became a special administrative region of China.[6]

On 27 June 2003, CR Airways became Hong Kong's third passenger airline after receiving a revised AOC from the director-general of Civil Aviation. It operated its first passenger service the next day.[7] It started passenger charter operations to Laoag, Philippines on 5 July 2003, with a Bombardier CRJ200 leased from GE Capital Aviation Services.[8][9] In September 2003, the airline applied for traffic rights to operate scheduled passenger services to Laoag and the Chinese cities of Jinan, Naning, Meixian and Wenzhou. In addition, Yip sold 40% of the airline to his company, China Rich Holdings, for HK$180 million.[10] By March 2004, the airline had added Siem Reap, Cambodia to its charter network.[8]

In April 2005, the Hong Kong Air Transport Licensing Authority (ATLA) granted a five-year licence to transport passengers, cargo, and mail to China; the airline was free to apply for traffic rights to 10 cities in China.[11] Then in July, the airline announced the imminent purchase of two Bombardier CRJ700s from Danish carrier Maersk Air.[12] At the end of the year, a memorandum of understanding with Boeing for the purchase of 10 Boeing 787 Dreamliners and 30 Boeing 737-800s for US$3.28 billion took the business to the next level. Some of the aircraft were from a prior Hainan Airlines order.[13][14]

2006–2010: Change of ownership and fleet expansion

[edit]

On 27 June 2006, Hainan Airlines secured a 45% holding in the airline by purchase of convertible notes held by Yu Ming Investments, which was to be injected into its new airline holding company, Grand China Air.[15] Two months later, Mung Kin-keung (蒙建強) acquired the remaining 55% of the airline and became the controlling shareholder on 7 August and its director on 13 August. Mung's previous main business interest had been a 30% holding in a restaurant operator, Banana Leaf (Asia Pacific) Catering Group Company Ltd.[16]

On 22 September 2006, CR Airways Ltd officially changed its name to Hong Kong Airlines Ltd, with a launch ceremony on 28 November 2006. The airline also introduced a new logo, which represents a bauhinia flower, the symbol of Hong Kong where the airline is anchored.[5][17] The airline made the biggest aircraft order in its young history on 21 June 2007, ordering 51 narrow- and wide-body aircraft from European plane maker, Airbus, at an estimated value of US$5.6 billion.[18] The airline's IATA code was changed from N8 to HX on 27 May 2007.[19]

On 24 October 2008, in preparation for the arrival of the Airbus A330-200 wide-body aircraft, the airline announced plans to adjust personnel and fleet composition. The new aircraft was to provide medium-haul passenger and cargo services to the Middle East and Australia.[20]

2010–2012: Growth and expansion

[edit]
A Hong Kong Airlines Airbus A330-200

On 8 June 2010, Hong Kong Airlines completed their flight certification from Hong Kong to Beijing, earning an air operator's certificate for the Airbus A330 operations from the Hong Kong Civil Aviation Department. Scheduled flights to Moscow were launched later that month.[citation needed]

In September 2010, the airline introduced its first Airbus A330F cargo freighter, on a route from Hong Kong to Hangzhou. It officially joined the IATA the next month.[citation needed]

In 2011, Hong Kong Airlines was awarded a 4-star rating by Skytrax. Its passenger traffic exceeded one million, serving 19 destinations.[citation needed]

On 8 March 2012, the airline launched daily flights from Hong Kong to London Gatwick Airport with an Airbus A330-200 aircraft. It operated as an all-Club Class service, featuring 34 "Club Premier" (business class lie-flat beds) and 82 "Club Classic" (cradle style recliner business class) seats.[21] The service lasted only six months.[22]

2012–2016: Repositioning

[edit]

In 2013, Hong Kong Airlines concluded a system-wide strategy review to determine its priority routes for the immediate future with key focus areas on the Asia–Pacific region during this period.[jargon] One new route was established when the Hong Kong–Maldives service was inaugurated.[clarification needed] Total passenger traffic had reached over four million and the last of its Boeing aircraft were retired.[citation needed]

In 2014, Hong Kong Airlines launched new passenger routes between Hong Kong and Ho Chi Minh City, Tianjin and Kagoshima; they also increased daily flight frequency to Beijing and Shanghai.[citation needed] The airline's lounge service was relaunched as "Club Bauhinia" on 27 June 2014.[citation needed]

In February 2015, Hong Kong Airlines signed a sub-lease with the Airport Authority Hong Kong to develop a flight training center on a 0.6-hectare (1.5-acre) plot near the southeast perimeter of Hong Kong International Airport (HKIA). In March 2015, the airline joined the Executive Committee of the Board of Airline Representatives in Hong Kong (BAR HK), holding hands with another almost 80 airlines to improve the commercial and operational conditions for airlines active in Hong Kong.[tone] On 28 December 2015, Hong Kong Airlines flight HX658 bound for Okinawa became the first departure from the HKIA Midfield Concourse.[citation needed]

2016–2018: Seeking intercontinental expansion

[edit]
A Hong Kong Airlines Airbus A350-900

In April 2017, the firm's air cargo business in Hong Kong was set up as an independent subsidiary cargo airline of Hong Kong (Hong Kong Air Cargo), having received its operator's licence from the Hong Kong Civil Aviation Department. In June, Skytrax ranked Hong Kong Airlines as the second-best regional airline and 24th-best internationally. In August, Atlas Air announced that it had placed three 747-400 freighters with Hong Kong Air Cargo. The first aircraft was to enter service in September 2017, serving routes between the United States and Asia. Delivery of the remaining two aircraft was anticipated in 2018. All three aircraft were to be operated by Atlas Air on behalf of Hong Kong Air Cargo.[23]

In September 2017, Hong Kong Airlines took delivery of its first Airbus A350-900, which shortly began service in a Bangkok (BKK) route. The company also launched its "Club Autus" VIP lounge at the HKIA Midfield Concourse. With the A350-900 aircraft, the airline began operating direct flights to Los Angeles on 18 December 2017, and to San Francisco three months later.[citation needed]

In December 2017, the company slogan was changed from Fresh + very Hong Kong to Where Hong Kong Begins.[24]

2018–Present: Economic hardship and scaling back

[edit]

In late 2018, a series of leaders resigned from the carrier's management, including its board's two co-chairmen Mung Kin-keung and Zhang Kui, its chief financial officer and vice-chairman, and at least four other directors.[25][26] Hou Wei, who was vice-president and chief marketing officer at Hainan Airlines, later took over as chairman.[26]

The attempted expansion was draining the company financially,[clarification needed] and in March 2019, Hong Kong Airlines announced a cutback in its passenger fleet from 38 to 28 planes, and reduced services on some of its new international routes, including to Vancouver, San Francisco, and Los Angeles.[27][28]

In an attempt to roll back loss-making long-haul services in favour of more profitable Asian destinations, flights to Gold Coast and Cairns were suspended from October 2018, and the last Auckland flight departed for Hong Kong on 22 May 2019.[29][30] HKA also discontinued its Fuzhou service in September 2019, while its San Francisco route was halted in October 2019 – less than two years after its launch in March 2018. In turn, the carrier increased the number of flights to three other short-haul destinations: Haikou, Hangzhou, and Sapporo.[31]

By November 2019, HKA was facing severe financial difficulties due to the China–US trade war and 2019–2020 Hong Kong protests. It was reportedly unable to pay employees' salaries on time.[32][better source needed] The airline announced that it would end its remaining long-haul routes (to Los Angeles and Vancouver) starting February 2020, thus becoming a purely regional airline.[33] It also announced the termination of its in-flight entertainment system from 1 December 2019 to cut costs.[citation needed]

The onset of the COVID-19 pandemic in early 2020 further worsened HKA's financial crisis. On 7 February 2020, the airline announced that it was cutting 400 positions (equivalent to 10% of its workforce), mainly pilots and cabin crew. It also asked remaining staff to take two months of unpaid leave, or to switch to a three-day work week.[33] On 18 February, HKA announced that it would suspend in-flight services such as food, drinks, pillows, and blankets to protect customers and crew during the pandemic. However, this was later reported to be "a desperate attempt to cut costs" as the airline faced a potential collapse. The following day, the airline announced that it would lay off an additional 170 employees, mostly cabin crew.[34]

In June 2021, Hong Kong Airlines announced that it would ground its entire fleet of A320s, leaving only eight A330s flying in the interim and prioritising cargo, as part of its pandemic-survival plan. The plan also called for hundreds more jobs to be cut.[35]

Hong Kong Airlines has resumed their flights to Hakodate, Denpasar, Maldives, Saipan and Taichung, Taiwan due to the boost of travelling markets.

In 22 Aug 2024, HKA Chairman Jeff Sun announced that Hong Kong Airlines will reboot the flights to Gold Coast (OOL) in January 2025. At the mean time, Sun claimed they will import three used Boeing 787s from its parent company Hainan Airlines to the long-haul flights from Hong Kong to Canada and USA re-introducing back in 2025;[citation needed] since the fleet of Airbus A350 had been sold in 2023.[citation needed]

Corporate affairs

[edit]
Hong Kong Airlines check-in counters at their hub Hong Kong International Airport

Ownership

[edit]

It was acquired in 2006 by Hainan Airlines,[1][2] actually controlled by the State-owned Assets Commission of Hainan Province (2006–2021)[36][37][38][39][40][excessive citations] and subsequently the Liaoning Fangda Group (2021–).[36][41] The company had a legal battle over corporate ownership in 2019.[42][43]

Headquarters

[edit]

The airline's head office is at One Citygate in Tung Chung, close to Hong Kong International Airport.[44]

Subsidiaries

[edit]

SATS Hong Kong Ltd. (SATS HK) is a joint venture with SATS Ltd. which provides passenger self-handling and ramp services at Hong Kong International Airport and HKA Holidays Ltd. (HKA Holidays) offers travel products, including fixed charter flight tickets, tour packages, and hotel accommodation.

Community engagement

[edit]

In 2015, Hong Kong Airlines was selected as the Official Carrier for the Hong Kong Paralympic Committee and the Sports Association for the Physically Disabled.[45] The airline has joined the Caritas Fund Raising Bazaar for six consecutive years from 2009 and sponsored Hong Kong events marking the "World Diabetes Day 2012". The airline also has many student sponsorship and aviation education programmes, including its "Triumph Sky High" Junior Programme, "Embrace the World" Student Sponsorship Programme and "School Sharing Workshops".[46]

Loyalty programme

[edit]
Further information: Fortune Wings Club

A frequent flyer program, the Fortune Wings Club, is operated by Hong Kong Airlines and its sister airlines Grand China Air, Grand China Express, Hainan Airlines and Lucky Air. Membership benefits include air ticket redemption and upgrade; dedicated First or Business Class check-in counters, Club Autus and Club Bauhinia lounge access, bonus mileage and extra baggage allowance.[47]

Cabin services

[edit]

Business class

[edit]

Business class on long-haul flights has 180-degree flat beds and direct aisle access. Passengers may use two business lounges: Club Autus and Club Bauhinia. They can also earn Fortune Wing Points, depending on their fare class.[citation needed]

Economy class

[edit]

Most economy class seats do not feature personal televisions (PTV), even on long-haul aircraft. On long-haul flights, passengers are given complimentary tablets, which serve as an in-flight entertainment system, including video-on-demand.[citation needed]

Destinations

[edit]
Main article: List of Hong Kong Airlines destinations

Hong Kong Airlines serves 40 destinations (including cargo), but not including codeshare.

Codeshare agreements

[edit]

Hong Kong Airlines codeshares with the following airlines:[48]

Fleet

[edit]

Current fleet

[edit]

As of September 2024, Hong Kong Airlines operates an all-Airbus fleet composed of the following aircraft.[50][51]

Hong Kong Airlines Fleet
Aircraft In Service Orders Passengers Notes
C Y Total
Airbus A320-200 13 1 8 144 152
— 174 174
Airbus A321-200 1 — — 220 220
Airbus A330-200 5 — 24 259 283 To be retired in 2025.
Airbus A330-300 10 3 32 260 292
30 255 285
Cargo Fleet
Airbus A330-200F 5 — Cargo
Total 34 4

Former fleet

[edit]

Hong Kong Airlines (then CR Airways) has previously operated the following aircraft:[citation needed]

Hong Kong Airlines Retired Fleet
Aircraft Introduced Retired Notes
Airbus A350-900 2017 2020
Boeing 737-300SF 2010 2012
Boeing 737-800 2006 2013 Last Boeing plane in the fleet prior to exit
Bombardier CRJ-200ER 2006 2007
Bombardier CRJ-700 2006 2008

See also

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References

[edit]
  1. ^ a b "海南航空股份有限公司拟对香港航空集团控股公司增资评估报告" (PDF). 北京中企华资产评估有限责任公司. 23 May 2013.
  2. ^ a b 申俊涵 (14 September 2015). "四年3次被迫推迟上市计划 香港航空IPO又搁浅了". 界面新闻.
  3. ^ "Club Autus awarded "Best New Lounge" by TheDesignAir". Hong Kong Airlines. 15 December 2017. Retrieved 11 June 2018.
  4. ^ Wallis, Keith (8 November 2001). "China Rich to launch helicopter service". The Standard. Archived from the original on 29 June 2011. Retrieved 1 August 2009.
  5. ^ a b "Sale and Purchase Agreements Relating to the Sale and Purchase of Shares in Apex Capital Ltd" (PDF) (Press release). China TianDiXing Logistics Holdings Ltd & Apex Capital Ltd. 31 October 2006. p. 6. Archived from the original (PDF) on 7 July 2011. Retrieved 30 July 2009.
  6. ^ "CR awarded Hong Kong ticket". Flight International. Reed Business Information. 26 March – 1 April 2002. p. 31. Retrieved 30 July 2009.
  7. ^ Wallis, Keith (28 June 2003). "CR Airways third airline in town". The Standard. Archived from the original on 29 June 2011. Retrieved 1 August 2009.
  8. ^ a b "Directory: world airlines". Flight International. Reed Business Information. 23–29 March 2004. p. 58. Retrieved 30 July 2009.
  9. ^ "Hong Kong regional starts up". Flight International. Reed Business Information. 1 July 2003. Retrieved 30 July 2009.
  10. ^ "CR Airways plans fleet additions". Flight International. Reed Business Information. 23 September 2003. Retrieved 30 July 2009.
  11. ^ "Hong Kong pair near China rights". Flight International. Reed Business Information. 26 April 2005. Retrieved 30 July 2009.
  12. ^ "CRJ700s for CR". Flight International. Reed Business Information. 5 July 2005. Retrieved 30 July 2009.
  13. ^ "CR Airways signs MoU for 787s and 737s". Flight International. Reed Business Information. 20 December 2005. Retrieved 30 July 2009.
  14. ^ Loong, Alman (21 December 2005). "CR Airways sets up deal to buy 40 Boeing jets". The Standard. Archived from the original on 29 June 2011. Retrieved 1 August 2009.
  15. ^ "Hainan Airlines takes large minority stake in CR Airways". Flight International. Reed Business Information. 27 June 2006. Archived from the original on 3 November 2012. Retrieved 30 July 2009.
  16. ^ "Biographical Details of Directors of the Company and the Investment Manager" (PDF). Alex Capital Ltd. 2006. Archived from the original (PDF) on 3 August 2016. Retrieved 4 January 2019.
  17. ^ ""Bauhinia is Our Heart, Soaring beyond Hong Kong Skies" The Launch Ceremony of Hong Kong Airlines Ltd" (Press release). Hong Kong Airlines. 28 November 2006. Retrieved 30 July 2009.[permanent dead link‍]
  18. ^ "HK Airlines inks deal with Airbus for 51 jets". The Standard. 22 June 2007. Archived from the original on 29 June 2011. Retrieved 1 August 2009.
  19. ^ June 2007 e-Newsletter edition Archived 30 September 2011 at the Wayback Machine. galileo.com
  20. ^ "Hong Kong Airlines starts medium-haul passenger and cargo service" (Press release). Hong Kong Airlines. 24 October 2008. Archived from the original on 6 December 2009. Retrieved 1 August 2009.
  21. ^ Cohen, Amon (11 November 2011). "Hong Kong Airlines Targets 'Top-End Corporate Market' With All-Premium London Service". Business Travel News. Retrieved 8 November 2012.
  22. ^ "Hong Kong Airlines to end London service". 8 August 2012.
  23. ^ Aviation Tribune article dated 8 August 2017, "Atlas Air Places Three 747-400Fs with Hong Kong Air Cargo;" http://aviationtribune.com/airlines/north-america/atlas-air-places-three-747-400fs-hong-kong-air-cargo/
  24. ^ "Club Autus awarded "Best New Lounge" by TheDesignAir". Hong Kong Airlines. 15 December 2017. Retrieved 11 June 2018.
  25. ^ Hui, Sophie (20 December 2018). "HK Airlines' spirits up despite power moves". The Standard (Hong Kong). Retrieved 4 January 2019.
  26. ^ a b Lee, Danny (20 December 2018). "Exodus of top brass from Hong Kong Airlines even bigger than first thought". South China Morning Post. Retrieved 4 January 2019.
  27. ^ Embattled Hong Kong Airlines could be set to cut its fleet by more than a quarter to help resolve financial woes, SCMP, 2 March 2019
  28. ^ Struggling Hong Kong Airlines cancels more long-haul flights with Vancouver, Los Angeles and San Francisco routes affected, SCMP, 10 March 2019
  29. ^ Bright, Craig (5 June 2018). "Hong Kong Airlines is axing its Gold Coast/Cairns flights". Business Traveller. Retrieved 2 September 2019.
  30. ^ "Hong Kong Airlines ending flights to Auckland". Australian Aviation. 14 February 2019. Retrieved 2 September 2019.
  31. ^ Chen, Jackie (29 July 2019). "Hong Kong Airlines to suspend San Francisco service from October". Business Traveller. Retrieved 2 September 2019.
  32. ^ "Hong Kong Airlines steckt in Finanznot". aero.de (in German). 29 November 2019.
  33. ^ a b Lee, Danny (7 February 2020). "Hong Kong Airlines to axe 400 jobs as coronavirus adds to financial crisis at troubled carrier". South China Morning Post.
  34. ^ Lee, Danny (19 February 2020). "Struggling Hong Kong Airlines sacks 170 staff, day after it ditches food, drink, blankets and pillows from flights". South China Morning Post.
  35. ^ Lee, Danny (7 June 2021). "Coronavirus: Hong Kong Airlines to slash hundreds more jobs, focus on cargo in bid to survive pandemic". South China Morning Post. Retrieved 7 June 2021.
  36. ^ a b 薛冰冰 (24 November 2021). "海航控股实控人变更，国资变民营". 界面新闻.
  37. ^ 康殷 (16 November 2015). "海航系旗下7家上市公司控股股东和实控人变更". 证券时报.
  38. ^ 石玉 (19 September 2005). "海航集团董事长陈峰：中国没有人能看懂海航". 时代人物周报.
  39. ^ "海南航空实控人变更：由海南省国资委变成海航集团". 民航之翼. 24 November 2021.
  40. ^ "被拆解后的海航集团将重新回归主业". 涛动宏观. 21 September 2021.
  41. ^ "方正正式入主海南航空！实控人方威何许人也？". 齐鲁晚报·齐鲁壹点. 9 December 2021.
  42. ^ "鍾國頌再入稟 禁港航控股轉讓". 明報 (in Chinese (Hong Kong)). 25 April 2019. Archived from the original on 10 June 2020. Retrieved 10 June 2020.
  43. ^ "【香港航空．拆局】鍾國頌陣營要全面控制 關鍵問題或需法庭解決". 香港01 (in Chinese (Hong Kong)). 25 April 2019. Archived from the original on 10 June 2020. Retrieved 10 June 2020.
  44. ^ "Contact Us." Hong Kong Airlines. Retrieved on 16 May 2013. "Headquarters / Tung Chung Office Address: 7th Floor, One Citygate, 20 Tat Tung Road, Tung Chung, Lantau, Hong Kong" – Chinese address: "總公司 / 東涌辦事處 地址: 香港大嶼山東涌達東路20號東薈城一座7樓"
  45. ^ Hong Kong Airlines – Hong Kong to Worldwide Air tickets, Online Special Air fares and Airline Reservation. "Hong Kong Airlines – Hong Kong to Worldwide Air tickets, Online Special Air fares and Airline Reservation". Retrieved 10 July 2015.
  46. ^ Hong Kong Airlines – Hong Kong to Worldwide Air tickets, Online Special Air fares and Airline Reservation. "Hong Kong Airlines – Hong Kong to Worldwide Air tickets, Online Special Air fares and Airline Reservation". Retrieved 10 July 2015.
  47. ^ "Fortune Wings Club". Fortune Wings Club. Archived from the original on 18 August 2009. Retrieved 1 August 2009.
  48. ^ "Profile on Hong Kong Airlines". CAPA. Centre for Aviation. Archived from the original on 29 October 2016. Retrieved 29 October 2016.
  49. ^ "El Al to have a codeshare agreement with Hong Kong Airlines". Globes. 6 May 2018.
  50. ^ "Entertainment". Hong Kong Airlines. Archived from the original on 22 August 2008. Retrieved 30 July 2009.
  51. ^ "Hong Kong Airlines-Our Fleet". Retrieved 5 August 2018.
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