Read More
Aviation traffic at the airport has been recovering, though not as quickly as hoped, with airlines saying they are hindered by a labor shortage.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
But are they really hampered by lack of manpower?
Labor shortage is a common issue for all airlines, not only those based in Hong Kong.
However, a recent move by Cathay Pacific's budget unit, Hong Kong Express Airways, came as a surprise when it decided to stop accepting group tour bookings.
HK Express was acquired by Cathay Pacific in 2019 for a total of almost HK$5 billion.
The acquisition came at a poor time as more than three years of Covid wreaked havoc on airlines around the world.
If not for a multi-billion-dollar bailout by the government, Cathay might have already ceased flying - and this is the first year HK Express has become fully functional under Cathay's wings.
While its decision to refuse group tour bookings from the fourth quarter may be driven by sound market sense, it raises serious questions.
HK Express is believed to be the world's only airline not welcoming tour groups. Why is that?
The company has offered an explanation that means little. The truth that neither Cathay nor HK Express has admitted is most likely that HK Express - or, to be exact, Cathay - has discovered all of a sudden that flight capacity constraints could be a blessing in disguise.
Call this a new equilibrium of maximum cost effectiveness.
As Hongkongers continue to emigrate and residents scramble to travel overseas after the pandemic, limited flights in the face of relatively high demand help drive up fares to a high rarely seen before Covid.
And when airline executives know that flights are full most of the time, there is no longer the incentive to offer tour group bookings that are usually sold at a discount.
Could this be the reason that travel agencies cannot find in the notice given to them by the airline?
It would be appreciated if either HK Express or Cathay could be forthcoming on this.
It is not my concern that Cathay, as the owner, could be undermining the city's strength as an aviation hub, especially as it has a new competitor next door, with Shenzhen airport posing a real threat to Chek Lap Kok.
Shenzhen has already emerged as a real competitor to Hong Kong at weekends.
The simple truth is that, for half the fares, flights from Shenzhen can carry passengers to, for example, Singapore or Tokyo for Christmas.
If the senior executives in Cathay or HK Express were also travel agency managers, would they start planning to use Shenzhen airport as an alternative to take advantage of the lower fares there?
This would be a natural reaction.
The expensive fares could be more damaging to the aviation hub than the suspension of the Airport Express after typhoon signal No 9 or higher is hoisted - as seen recently with the massive disruption and inconvenience experienced by passengers landing in Chek Lap Kok during typhoon Koinu.
One last note: as the authorities review flight arrangements amid adverse weather, they should avoid reacting to a situation in a mechanical fashion.














