Regional Round-Up
LCCs create some Hong Kong heat
October 1st 2013
With surprising alacrity, two low-cost carriers announced the launch of services in Hong Kong, while a third ‘wannabe’ LCC, Jetstar Hong Kong, is fighting a legal battle to get off the ground in the city.Read More »
Last month, the CEO of innovative Scoot, Campbell Wilson (pictured), literally scooted into his Hong Kong press conference to announce fares between Singapore and Hong Kong that were 70% cheaper than his legacy rivals – including his owner, Singapore Airlines (SIA).
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Scoot, a long-haul LCC that was launched in 2011, now flies to 11 destinations in Australia, China, Bangkok and Tokyo and Seoul via Taipei. The new route will commence with a five times a week service when the LCC receives its sixth B777 next month.
Although borderline corny, its marketing catchline “it would be dim not to get sum” [of its fares], is aimed at young travellers and retirees who will fly to Singapore and onto 50 other destinations offered by Scoot’s partners, tigerair and SIA.
Also in September, Cathay Pacific Airways found itself in the unfamiliar company of Hong Kong Express, a regional carrier that is transforming itself into a Hong Kong-based LCC, in the battle to stop Jetstar Hong Kong from ‘putting out its shingle’ in the Special Administrative Region.
The aspiring LCC, a joint venture formed 18 months ago between the Qantas Group and China Eastern Airlines and redrawn in July to include a third partner, Shun Tak Hong Kong, expected to be flying by mid-2013.
However, its application for an Air Operators Certificate (AOC) was only gazetted in September. Cathay lodged an objection to the application based on the argument that the LCC had its principal place of business at Jetstar headquarters in Australia and not Hong Kong.
Hong Kong Express, which would be competing with Jetstar Hong Kong if the AOC is approved, said its objection was based on “too many airlines competing for too few flight slots and parking stands – that would result in congestion”.
