Hong Kong Airlines Is Challenging Cathay Pacific for Passengers

Hong Kong Airlines expansion challenges Cathay Pacific for passengers.

Flyers may soon have a new choice for trans-Pacific flights – one that the expanding carrier is hopeful passengers will choose over a standard bearer. Skift reports new service offered by Hong Kong Airlines will increase passengers between North America and the semi-autonomous city, putting pressure on oneworld partner Cathay Pacific.

Although the newer airline has been in business for over a decade, dedicated service to North America only began this year with routes to Canada’s west coast. By 2018, Hong Kong Airlines will compete directly with Cathay Pacific for flyers in the United States, with routes to Los Angeles, New York and San Francisco.

Unlike competition in Europe, which is led by low-cost carriers, Hong Kong Airlines is a full-service carrier with both economy and business class options. Initial airfares are below market price, but the goal is to offer an equal alternative to Cathay Pacific from the United States to Asia.

“We position ourselves as affordable luxury,” Hong Kong Airlines chief marketing officer George Liu told Skift. “We are not as expensive as a really luxury brand, but we’re not the lowest.”

Is there enough competition to justify another airline flying to the special administrative region? Analysts believe there may be too much saturation for the plan to be successful. Cathay Pacific experienced a significant financial loss in the first half of 2017, while United Airlines has called Hong Kong an “underperforming market.”

Despite the concerns, Hong Kong Airlines is moving forward with their expansion plans. With support from a large conglomerate, the carrier is adding Airbus A350 aircraft to their fleet, with the goal of offering more flights into their home city.

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