Hong Kong Airlines

Hong Kong Airlines Limited (stylised as HONGKONG AIRLINES) 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 and flies to more than 30 regional and international destinations in Asia and North America using both passenger and cargo aircraft. The company slogan is Where Hong Kong Begins[1] and Fresh+very Hong Kong.

Not to be confused with Air Hong Kong, Hong Kong Airways, or HK Express.

Hong Kong Airlines
香港航空
IATA ICAO Callsign
HX CRK BAUHINIA
Founded2006
HubsHong Kong International Airport
Frequent-flyer programFortune Wings Club
SubsidiariesHong Kong Air Cargo
Fleet size44
Destinations48 incl. cargo, 39 excl. cargo
HeadquartersHKA Training Academy, Chek Lap Kok, Lantau, Hong Kong
One Citygate, Tung Chung, Lantau, Hong Kong
Key people
  • Hou Wei (Chairman)
  • Sun Jianfeng (Chief Executive Officer)
Websitehongkongairlines.com
Hong Kong Airlines
Traditional Chinese香港航空
Cantonese YaleHēung góng hòhng hūng

History
A CR Airways Boeing 737-800 in 2006
A Hong Kong Airlines Boeing 737-800 in 2007

2001–2006: The early years

Robert Yip (Chinese: 葉光), the chairman of China Rich Holdings, with business interests in Chinese medicine, internet portal, construction and property development, established CR Airways in Hong Kong on 28 March 2001.[2][3] 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, able to 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.[4]

On 27 June 2003, CR Airways became Hong Kong's third passenger airline after receiving a revised AOC from the Director of Civil Aviation. It flew its first passenger service the next day.[5] It started passenger charter operations to Laoag, Philippines on 5 July 2003, with a Bombardier CRJ200 leased from GE Capital Aviation Services.[6][7] In September 2003, the airline applied for traffic rights to operate scheduled passenger services to Laoag and Chinese cities of Jinan, Naning, Meixian and Wenzhou. In addition, Robert Yip sold 40 percent of the airline to his company, China Rich Holdings, for HK$180 million.[8] By March 2004, the airline had added Siem Reap, Cambodia to its charter network.[6]

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.[9] Then in July, the airline announced the imminent purchase of two Bombardier CRJ700s from Danish carrier Maersk Air.[10] At year-end, 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.[11][12]

2006–2010: Change of ownership and fleet expansion

On 27 June 2006, Hainan Airlines secured a 45 percent 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.[13] Two months later, Mung Kin-keung (Chinese: 蒙建強) acquired the remaining 55 percent 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 percent holding in Banana Leaf (Asia Pacific) Catering Group Company Ltd, a restaurant operator.[14]

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.[3][15] The airline made the biggest aircraft order in its young history on 21 June 2007, by ordering 51 narrow- and wide-body aircraft from European plane maker, Airbus, at an estimated value of US$5.6 billion.[16] The airline's IATA code was changed from N8 to HX on 27 May 2007.[17]

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 were to provide medium haul passenger and cargo services to the Middle East and Australia.[18]

2010–2012: Growth and expansion

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.

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.

In 2011, Hong Kong Airlines was awarded a 4-star rating by Skytrax. Passenger traffic exceeded one million passengers serving 19 destinations.

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,[19] the service lasted only six months.[20]

2012–2016: Repositioning

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. One new route was established when the Hong Kong-Maldives service was inaugurated. Total passenger traffic had reached over four million and the last of its Boeing aircraft were retired.

In 2014, Hong Kong Airlines launched new passenger routes between Hong Kong and Ho Chi Minh, Tianjin and Kagoshima; they also increased daily flight frequency to Beijing and Shanghai.

The airline's lounge service was relaunched as "Club Bauhinia" on 27 June 2014.

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 plot near the southeast perimeter of the Hong Kong International Airport. 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. On 28 December 2015, Hong Kong Airlines flight HX658 bound for Okinawa became the first departure from the HKIA Midfield Concourse (MFC).

2016–2018: Seeking intercontinental expansion

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 Cargo Airlines), having received its operator's licence from the Hong Kong Civil Aviation Department. In June 2017, Skytrax ranked Hong Kong Airlines second-best regional airline and 24th best internationally. On 8 August 2017, Atlas Air announced that it had placed three 747-400 freighters with Hong Kong Air Cargo, the airline's cargo subsidiary. 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 during 2018. All three aircraft were to be operated by Atlas Air on behalf of Hong Kong Air Cargo.[21]

In September 2017, Hong Kong Airlines took delivery of its first Airbus A350-900, which shortly began service to and from Bangkok (BKK). The company also launched its "Club Autus" VIP lounge at the HKIA Midfield Concourse. On 18 December 2017, Hong Kong Airlines started operating a direct flight to Los Angeles with the A350-900 aircraft, and direct flights to San Francisco followed three months later.

2018–Present : Economic hardship and scaling back

In late 2018, both co-chairmen, Mung and Zhang Kui, resigned, as did the airline's vice-chairman and CFO.[22] Former vice-president and chief marketing officer of Hainan Airlines, Hou Wei, took over as chairman in November 2018.[23]

The attempted expansion was draining the company financially, and in March 2019, it 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.[24][25]

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.[26][27]

On 5 October 2019 its San Francisco flight, launched less than two years earlier, was suspended. The airline also discontinued its Hong Kong-Fuzhou service from 2 September, while boosting flights to three short-haul destinations.

The carrier added a daily flight between Hong Kong and Haikou from 2 September, four additional weekly flights between Hong Kong and Hangzhou from 8 September and two additional weekly flights between Hong Kong and Sapporo from 28 September. The arrangements brought the total number of its Haikou, Hangzhou and Sapporo services to three daily flights, 14 weekly flights, and 11 weekly flights, respectively.[28]

By November 2019 the airline was facing severe financial difficulties due to the ongoing Sino-US trade conflict, coupled with political and social unrest in Hong Kong and was reportedly unable to pay the employees salaries on time.[29] On 29 November the airline announced that it would end its remaining long-haul flights, to Los Angeles and Vancouver, from February 2020, leaving HKA as a purely regional airline.[30] It also announced the termination of its in-flight entertainment system from 1 December 2019, to cut costs.[31]

On 7 February 2020, as the COVID-19 pandemic hit many airlines hard, HKA announced it was cutting 400 jobs – ten percent of the workforce, mainly pilots and cabin crew, and asked remaining staff to take two months' unpaid leave or switch to a three-day week.[32]

On 18 February 2020, HKA announced that it would suspend in-flight services such as food, drinks and blankets to help stop the spread of the 2019 Coronavirus.[33] The next day HKA also announced they would be laying off 170 additional employees, mostly flight attendants.[34]

Corporate affairs
Hong Kong Airlines check-in counters at their hub Hong Kong International Airport

Headquarters

The airline's head office is at One Citygate in Tung Chung, close to Hong Kong International Airport.[35]

Subsidiaries

Hong Kong Aviation Ground Services Ltd (HAGSL) is a provider of passenger self-handling services at Hong Kong International Airport and HKA Holidays Ltd (HKA Holidays) offers travel products, including fixed charter flights tickets, tour packages and hotel accommodation.

Community engagement

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.[36] 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 a number of student sponsorship and aviation education programmes, including its "Triumph Sky High" Junior Programme, "Embrace the World" Student Sponsorship Programme and "School Sharing Workshops".[37]

Loyalty programme
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.[38]

Cabin services

Business class

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.

Economy class

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.

Destinations
Main article: List of Hong Kong Airlines destinations

Codeshare agreements

Hong Kong Airlines codeshares with the following airlines:[39]

Fleet
Hong Kong Airlines Airbus A320-200 wearing an older livery version
Hong Kong Airlines Airbus A330-300
Hong Kong Airlines Airbus A350-900

Current fleet

Hong Kong Airlines operates an all-Airbus fleet comprising the following aircraft.[43][44][45]

Hong Kong Airlines Fleet
Aircraft In Service Orders Passengers Notes
C Y Total
Airbus A320-200 12 — 8 144 152
— 174 174
Airbus A330-200 10 — 24 259 283
18 246 264
18 263 281
Airbus A330-300 8 5 32 260 292
30 255 285
Airbus A350-900 1 5 33 301 334
Cargo Fleet
Airbus A330-200F 5 — Cargo
Total 36 10

Fleet history

Hong Kong Airlines has previously operated the following aircraft:[46]

Hong Kong Airlines Retired Fleet
Aircraft Introduced Retired Notes
Boeing 737-300SF 2010 2012
Boeing 737-800 2006 2013
Bombardier CRJ-200ER 2006 2007
Bombardier CRJ-700 2006 2008
gollark: Idea: automatic contract agreeer.
gollark: GTech™ photonic cuboids, as they are not made of sand, will remain in operation.
gollark: Okay, debate topic: all computers should be converted back into the sand from whence they came.
gollark: Or just don't because the OS will do it!
gollark: Store all new `malloc`ed pointers in a linked list, then free everything in the linked list at the end, then free the linked list.

See also

References
  1. "Club Autus awarded "Best New Lounge" by TheDesignAir". Hong Kong Airlines. 15 December 2017. Retrieved 11 June 2018.
  2. 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.
  3. "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.
  4. "CR awarded Hong Kong ticket". Flight International. Reed Business Information. 26 March – 1 April 2002. p. 31. Retrieved 30 July 2009.
  5. 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.
  6. "Directory: world airlines". Flight International. Reed Business Information. 23–29 March 2004. p. 58. Retrieved 30 July 2009.
  7. "Hong Kong regional starts up". Flight International. Reed Business Information. 1 July 2003. Retrieved 30 July 2009.
  8. "CR Airways plans fleet additions". Flight International. Reed Business Information. 23 September 2003. Retrieved 30 July 2009.
  9. "Hong Kong pair near China rights". Flight International. Reed Business Information. 26 April 2005. Retrieved 30 July 2009.
  10. "CRJ700s for CR". Flight International. Reed Business Information. 5 July 2005. Retrieved 30 July 2009.
  11. "CR Airways signs MoU for 787s and 737s". Flight International. Reed Business Information. 20 December 2005. Retrieved 30 July 2009.
  12. 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.
  13. "Hainan Airlines takes large minority stake in CR Airways". Flight International. Reed Business Information. 27 June 2006. Retrieved 30 July 2009.
  14. "Biographical Details of Directors of the Company and the Investment Manager" (PDF). Alex Capital Ltd. 2006.
  15. ""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.
  16. "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.
  17. June 2007 e-Newsletter edition Archived 30 September 2011 at the Wayback Machine. galileo.com
  18. "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.
  19. 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.
  20. "Hong Kong Airlines to end London service". 8 August 2012.
  21. 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/
  22. Hui, Sophie (20 December 2018). "HK Airlines' spirits up despite power moves". The Standard. Retrieved 4 January 2019.
  23. "Exodus of top brass from Hong Kong Airlines even bigger than first thought". South China Morning Post. 20 December 2018. Retrieved 4 January 2019.
  24. 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
  25. Struggling Hong Kong Airlines cancels more long-haul flights with Vancouver, Los Angeles and San Francisco routes affected, SCMP, 10 March 2019
  26. "Hong Kong Airlines is axing its Gold Coast/Cairns flights". Business Traveller. Retrieved 2 September 2019.
  27. "Hong Kong Airlines ending flights to Auckland". Australian Aviation. 14 February 2019. Retrieved 2 September 2019.
  28. "Hong Kong Airlines to suspend San Francisco service from October". Business Traveller. Retrieved 2 September 2019.
  29. aero.de - Hong Kong Airlines steckt in Finanznot (German) 29 November 2019
  30. onemileatatime.com - Hong Kong Airlines Ends All Long Haul Flights 29 November 2019
  31. "Hong Kong Airlines Cuts Inflight Entertainment". Simple Flying. 30 November 2019. Retrieved 1 December 2019.
  32. Hong Kong Airlines to axe 400 jobs as coronavirus adds to financial crisis at troubled carrier, SCMP by Danny Lee, 7 Feb 2020
  33. "Hong Kong Airlines stops in-flight services and lays off 170 employees"
  34. "Struggling Hong Kong Airlines sacks 170 staff, day after it ditches food, drink, blankets and pillows from flights"
  35. "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"
  36. 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.
  37. 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.
  38. "Fortune Wings Club". Fortune Wings Club. Archived from the original on 18 August 2009. Retrieved 1 August 2009.
  39. "Profile on Hong Kong Airlines". CAPA. Centre for Aviation. Archived from the original on 29 October 2016. Retrieved 29 October 2016.
  40. "El Al to have a codeshare agreement with Hong Kong Airlines".
  41. Van Den Driessche, Maarten (3 August 2017). "Hong Kong Airlines signs codeshare agreement with Fiji Airways".
  42. "Hong Kong airlines to have codeshare agreement".
  43. Hong Kong Airlines fleet list at planespotters.net Archived 1 July 2011 at the Wayback Machine
  44. "Entertainment". Hong Kong Airlines. Archived from the original on 22 August 2008. Retrieved 30 July 2009.
  45. "Hong Kong Airlines-Our Fleet". Retrieved 5 August 2018.
  46. "Hong Kong Airlines Fleet Details and History". Planespotters.net. 30 August 2017. Retrieved 17 January 2017.

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