Friday, May 3, 2013

Hong Kong Express Airways to turn into budget airline

In seeking a slice of the pie of Asia’s booming low-cost flights market, Hong Kong Express Airways Ltd wants to turn itself into a budget airline in Q3 of 2013.

Company President Yang Jianhong said that it will reveal plan details in May. Yang added that Hong Kong Express sees the potential for growth in budget-carrier services, because the Asian market has been relatively untapped compared to the European and North American markets.

"We see rapid growth potential for budget-carrier services, as penetration in Asia remains low compared

with more developed markets in Europe and the U.S.," he said. The airline has appointed consultants to advise the company about its changes.

The shift in Hong Kong Express's business follows weakened demand for full-service flights and first- and business-class seats amid the global economic slowdown. Asia's largest airlines have been quick to take advantage of the growing demand for budget fares by launching their own brands: Scoot from Singapore Airlines Ltd, Jetstar Japan from Japan Airlines Corp and Thai Smile from Thai Airways International