Hong Kong Airlines once again plans to operate long haul flights, after that strategy nearly liquidated the airline back in 2019. However, the company is going about it a bit more conservatively this time around.
In this post:
Hong Kong Airlines resuming intercontinental flights
Hong Kong Airlines is currently a regional carrier, primarily operating flights within Asia. The airline plans to change that as of early 2025, though:
- As of January 17, 2025, Hong Kong Airlines plans to operate 4x weekly flights between Hong Kong (HKG) and Gold Coast, Australia (OOL)
- As of January 18, 2025, Hong Kong Airlines plans to operate 2x weekly flights between Hong Kong (HKG) and Vancouver, Canada (YVR)
The airline states that this is a strategic move that signifies the airline’s transformation from a regional carrier to one with a global route network. Hong Kong Airlines will use Airbus A330s for this route, so the 6,392-mile Vancouver service is sort of pushing the range of this aircraft.
What’s interesting is that several months ago, Hong Kong Airlines CEO Jeff Sun Jianfeng stated in an interview with Bloomberg that the airline wanted to acquire at least three secondhand Boeing 787s, in order to resume long haul service. The airline had reportedly been targeting Los Angeles (LAX), Seattle (SEA), Toronto (YYZ), and Vancouver (YVR).
So now we’re seeing the airline restart North America service with A330s, though not much else in North America (aside from Seattle) is within range with that aircraft.
For some background on Hong Kong Airlines, the carrier currently has a fleet of 23 Airbus planes, comprised of A320 and A330-family aircraft, which have in recent years been used for flights within Asia. However, the airline used to be much bigger… well, briefly.
In 2017, the company began a huge expansion push, whereby the airline took delivery of Airbus A350s, with the goal of becoming a truly global airline. The airline ended up launching flights to the United States, including to Los Angeles and San Francisco. I even had the chance to review Hong Kong Airlines’ A350 business class.
Well, that service lasted for all of a couple of years, and by early 2020, the carrier ended all long haul flights, and dumped its A350s.
Hong Kong Airlines had been hemorrhaging money on long haul flights. It also didn’t help that Hong Kong Airlines’ parent company, HNA Group, wasn’t exactly in a good financial spot either.
For many months, the airline was teetering on the brink of liquidation, to the point that it couldn’t even pay its staff during some periods. Fortunately the airline managed to restructure, and has shrunk back into profitability. The airline has gone from having over 50 planes, to now having fewer than half as many.
Does Hong Kong Airlines’ strategy make sense?
Is there any merit to Hong Kong Airlines relaunching long haul flights, when that effort nearly ran the airline out of business several years back?
I’m generally skeptical, given how poorly this worked out the first time around. It’s notoriously difficult to make money on long haul flying, especially when you’re not the dominant business airline, with the bulk of corporate contracts.
Hong Kong Airlines will struggle to get high yield business travelers, since the airline just won’t have the schedule, frequencies, or existing relationships, of Cathay Pacific. For example, Cathay Pacific flies twice daily to Vancouver, while Hong Kong Airlines will fly twice weekly.
Making money on these kinds of routes off leisure travelers, especially as a non-preferred airline, isn’t going to be easy. We’re back to seeing sub-$700 roundtrip fares from the United States to Hong Kong, and that’s not going to make airlines any money.
Now, Asia is in a weird spot when it comes to aviation, given the extent to which Mainland China’s international travel demand just hasn’t recovered. This is a blessing and curse for airlines, since airlines from Mainland China are operating much smaller international schedules than pre-pandemic.
It means that a lot of travelers from Mainland China are routing through other hubs. At the same time, there also just aren’t as many of them.
To Hong Kong Airlines’ credit, starting with A330s is at least low risk. The airline isn’t having to acquire any new jets to operate this service, and costs are also lower than flying brand new A350s. So I don’t think this will be some smashing success, though perhaps the airline will do okay with A330s, and it’s at least a low risk way to dabble in long haul flying.
Bottom line
Hong Kong Airlines is planning on resuming long haul flights. As of January 2025, the airline will operate flights to Vancouver and Gold Coast with existing A330s. There had been talk about the possibility of acquiring secondhand 787s, though nothing has come of that as of now.
I’m curious to see how this works out. More competition is a good thing, though I can’t imagine yields will be great on these flights.
What do you make of Hong Kong Airlines’ long haul growth plans?
Surprised it's not SEA given how everyone seems to be launching service there all the time these days.
YVR will do fine. Canada is starved for non-Air Canada flights. HK Airlines will probably partner with WestJet for some feed and call it a day.
More competition on TPAC routes is always welcome.
I'm not sure to what extent their operation have came back to normal, because I've seen the airline only offering a creamy bread as a meal service on an ICN-HKG flight (which is almost unheard of in the region, for a flight of that length). But regardless, I hope they can expand once again (and most importantly, in a financially sustainable manner) and boost some supply lost in last few years.
Chinese carriers have...
I'm not sure to what extent their operation have came back to normal, because I've seen the airline only offering a creamy bread as a meal service on an ICN-HKG flight (which is almost unheard of in the region, for a flight of that length). But regardless, I hope they can expand once again (and most importantly, in a financially sustainable manner) and boost some supply lost in last few years.
Chinese carriers have really shrunken since pandemic, in terms of their international flights supply. Especially the flights to the US, they're almost non-existence compared to pre-Pandemic level, and with Donald Trump coming back to the White House, I guess there would be no chance of Chinese carriers' US flights increasing any time soon.
China Southern just announced that they're gonna sell their B788s, due to decrease in demand and the inefficiency of the type.
ICN is a low yield destination for them, free flights had been brought back for HND, KIX, CTS, PEK, PVG, DPS, and MLE
sorry! posted same thing with some weird name accidentally!
one person making all kinds of posts under different names is the normal for this website
@NOLAviator
Just like Proximanova = VT-CIE
Wow! they will need to have some luck to get "established" and then they should add more flights than just twice a week. Unfortunately, it seems that they are going to fly to Vancouver and Gold Coast because they can't pay for Seattle and Brisbane the nearest large cities to the two.
Wow! they will need to have some luck to get "established" and then they should add more flights than just twice a week. Unfortunately, it seems that they are going to fly to Vancouver and Gold Coast because they can't pay for Seattle and Brisbane the nearest large cities to the two.
Vancouver’s population is 2.6MM to Seattle’s 4.0MM, however it is 50% Asian compared to 14% for Seattle. Specifically, the Chinese population in Vancouver is at least 3 times that of Seattle. Not sure it’s a decision based on what the airline can afford.