3.2 Major Budget Airlines in Hong Kong
Hong Kong Airlines is the latest carrier in Asia to embrace a dual-brand strategy of completing the full-service airline with a budget airline subsidiary. HK Airlines will transform sister carrier Hong Kong Express, currently almost identical to HK Airlines, into a budget airline launching services in the northern winter 2013/2014 schedule – around Oct-2013, giving Hong Kong its first low-cost carrier. HK Express plans to grow to 30 all-economy A320s by 2018, which should make it larger than planned budget airline Jetstar Hong Kong. Meanwhile, Hong Kong Express will be Hong Kong's first budget airline, beating to the title proposed start-up Jetstar Hong Kong. The launch of Hong Kong Express will help lift Hong Kong's budget airline penetration rate, which was just over 5% in 2012 compared to over 25% in Singapore. Hong Kong Express sees itself aiming for destinations in northern Asia, like Japan and South Korea but also Mongolia and as far north in China as Harbin. To the south Hong Kong Express sees Indonesia as its southern limit while to the west HK Express could go as far as Nepal. Furthermore, the Jetstar Group has demonstrated how to accommodate full-service carriers transferring passengers onto its low-cost flights, but this may be more than what Hong Kong Airlines/Express can handle as they embark on a major strategy change; Jetstar facilitated connections gradually. Scoot, just over a year old, has transfers with full-service sister airlines (and owners) Singapore Airlines and SilkAir, but these are one way: Scoot places passengers onto SIA/SilkAir while SIA/SilkAir do not place passengers onto Scoot. This means there is no risk of a full-service passenger finding himself on an budget airline instead and being upset at the difference in service quality. There may be a premium market, of whatever size, in Asia in the long-term, but there will be a far larger budget market.
3.2 หลักงบประมาณสายการบินใน Hong KongHong Kong Airlines is the latest carrier in Asia to embrace a dual-brand strategy of completing the full-service airline with a budget airline subsidiary. HK Airlines will transform sister carrier Hong Kong Express, currently almost identical to HK Airlines, into a budget airline launching services in the northern winter 2013/2014 schedule – around Oct-2013, giving Hong Kong its first low-cost carrier. HK Express plans to grow to 30 all-economy A320s by 2018, which should make it larger than planned budget airline Jetstar Hong Kong. Meanwhile, Hong Kong Express will be Hong Kong's first budget airline, beating to the title proposed start-up Jetstar Hong Kong. The launch of Hong Kong Express will help lift Hong Kong's budget airline penetration rate, which was just over 5% in 2012 compared to over 25% in Singapore. Hong Kong Express sees itself aiming for destinations in northern Asia, like Japan and South Korea but also Mongolia and as far north in China as Harbin. To the south Hong Kong Express sees Indonesia as its southern limit while to the west HK Express could go as far as Nepal. Furthermore, the Jetstar Group has demonstrated how to accommodate full-service carriers transferring passengers onto its low-cost flights, but this may be more than what Hong Kong Airlines/Express can handle as they embark on a major strategy change; Jetstar facilitated connections gradually. Scoot, just over a year old, has transfers with full-service sister airlines (and owners) Singapore Airlines and SilkAir, but these are one way: Scoot places passengers onto SIA/SilkAir while SIA/SilkAir do not place passengers onto Scoot. This means there is no risk of a full-service passenger finding himself on an budget airline instead and being upset at the difference in service quality. There may be a premium market, of whatever size, in Asia in the long-term, but there will be a far larger budget market.
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