Hong Kong Airlines has stopped selling fares to Auckland, raising more concerns about the stability of the already beleaguered carrier. Once positioning itself as the main competitor of Cathay Pacific, it expanded across Europe, North America and Australia only to suddenly pare back its operations.
The South China Morning Post reports that Hong Kong Airlines has stopped the sale of tickets to Auckland, raising further concerns about the stability of the already beleaguered carrier.
Once positioning itself as the main competitor of Cathay Pacific, the outlet reports that, “Early this week, the airline stopped ticket sales beyond May 22 until October 26, and then on Tuesday, it closed reservations from October 27 onwards, around the start of the new airline scheduling period, which runs until March 2020.”
Brendan Sobie, chief analyst with the CAPA Centre for Aviation, spoke to the outlet to offer his insight into the fierce competition among Asian carriers in the current market. “Any new competitor generally has to accept yields that are even below the low market average, making it impossible to approach break-even. Unfortunately, long-haul expansion for smaller Asian airlines is often more about prestige than profitability.”
He added, “There are so many opportunities to grow within Asia that are less risky and more viable.”
Commencing its operations back in 2006, Hong Kong Airlines is an entity of the struggling HNA Group. While it initially only operated regionally within Asia, recent years have seen it expand into the Australian, European and North American market only to rapidly shrink again due to poor financial conditions. Operating an Airbus fleet of 38 craft, it currently serves 40 destinations in the Asia Pacific region and North America.
Hong Kong Airlines has offered no comments ahead of a public announcement, which the outlet understands to be set for Thursday.