What is the fallout from the Hong Kong Express ‘golden week’ cancellations debacle?

City’s sole budget carrier endures a tough week, with manpower shortage exposed

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Hong Kong Express is the city’s sole budget airline. Photo: Roy Issa

Published: 10:00am, 5 Oct 2017Updated: 6:44pm, 7 Jun 2018

The recent Hong Kong Express cancellations, which hit last week and threatened the travel plans of thousands over the “golden week” holiday, have exposed some fundamental operation and management weaknesses at the airline. It has also pushed staff to organise, with workers urging the company to improve conditions and open talks about industrial issues.

How many local budget airlines are there in Hong Kong?

Launched in October 2013, Hong Kong Express is the city’s sole budget airline, with a fleet of 21 planes. Jetstar Hong Kong, another budget carrier, had been trying to get off the ground since 2012, but Hong Kong authorities finally rejected its licence application in 2015. And the city’s first low-cost carrier Oasis Hong Kong, which operated long-haul flights from Hong Kong to London and Vancouver, shut down in 2008, after only 18 months.

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But despite being the city’s only low-cost airline, HK Express faces increasingly fierce competition from regional budget rivals operating in Hong Kong, such as Singapore’s Tiger Airways, Japan’s Vanilla Air and China’s Spring Airlines. And the competition may soon get fiercer, with Hong Kong’s flagship carrier Cathay Pacific Airways considering joining the game by offering discount fares that could match those of low-cost operators.

What happened last week, and what did it expose?

HK Express cancelled 18 flights between Hong Kong and three cities in Japan and South Korea from October 1 to October 8, affecting thousands of passengers travelling during the Chinese National Day “golden week” holiday.

Managers admitted the cancellations were due to an exodus of safety trainers two months ago, that had affected its number of qualified crew and pilots. But they said they had helped all 2,070 affected passengers book alternative flights, or given them refunds.

The Air Transport Licensing Authority, which licenses airlines in Hong Kong, warned of possible action against the carrier, and transport minister Frank Chan Fan hinted the airline could have breached the terms of its licence.