Greater Bay Airlines given go-ahead to fly 104 regional routes, setting up rivalry with Hong Kong flagship carrier Cathay Pacific

The Hong Kong government has awarded Greater Bay Airlines a licence to start flying 104 routes, setting up a rival to the city’s flagship carrier Cathay Pacific. The Air Transport Licensing Authority revealed on Monday the fledgling carrier had been given a five-year permit to operate scheduled commercial flights with immediate effect. “Under the licence, Greater Bay Airlines Company Limited may operate scheduled journeys for the carriage in Hong Kong of passengers, cargo or mail over 104 routes at unlimited frequency from and to Hong Kong International Airport,” a statement said. The routes cover mainland China, Taiwan, Japan, South Korea and other destinations in the Asia-Pacific region. The airline’s chief executive Algernon Yau Ying-wah, a former Cathay veteran, called the licence an important milestone for the airline. The start-up carrier received its Air Operating Certificate in October last year. The air licence is required to operate scheduled passenger and cargo flights, and the airline said it could now expedite preparations, such as applying for operating permits from different aviation authorities of places where it planned to fly. “We are excited to bring a new airline choice to customers, at a time when travellers are yearning for the opportunity to fly again soon,” Yau said. The airline postponed its original launch in the fourth quarter of last year, due to a delay in acquiring the air licence. Hong Kong grants air operating certificate to Greater Bay Airlines Greater Bay Airlines took delivery of its first aircraft, a Boeing 737, in September last year and said it had plans to receive its second and third aircraft “soon”. A Cathay Pacific spokeswoman said that before the pandemic, the airline was competing with more than 100 carriers. “We recognise that an active and vibrant market for air services is critical to the success of Hong Kong as an international aviation hub. We remain committed to keeping Hong Kong connected,” she told the Post. “Despite the current challenging operating environment for the aviation industry, we are excited by the opportunities present in Hong Kong and across the Greater Bay Area.” Before the pandemic, the Cathay group, including now-defunct subsidiary Cathay Dragon, flew to 93 destinations worldwide. This week the airline plans to operate to 41 cities across the world, according to air schedule provider OAG. Independent aviation analyst Brendan Sobie said any new airline would seek to compete on large routes that would have other operators, and noted that Greater Bay Airline’s market, product and network was not the same as that of Cathay. “It is a new entrant with its own model and strategy. We will have to see if there is room for it alongside the existing competitors over the long term,” he said. Shukor Yusof, founder of aviation advisory firm Endau Analytics, agreed that he did not believe Greater Bay Airlines would topple Cathay despite being allowed to operate out of Hong Kong’s airport. “What it means is more options for Hong Kong residents as well as mainland passengers. There might be overlapping routes although this won’t ruffle Cathay as they have far more resources and better products to suit a wider range of consumers,” he said. John Grant, senior analyst of OAG, said there would inevitably be overlap and competition between the new airline and other carriers. “That is what Greater Bay Airlines is hoping to achieve. Competition, alternate schedules and fares through which they can grab a share of the existing market and encourage more travel in the coming months,” he said, noting there were benefits to launching an airline now amid “pent-up demand”. Andrew Yuen Chi-lok, from the Aviation Policy and Research Centre at Chinese University, said it would take time from getting a licence to full operation. “Although the aviation market in Hong Kong is facing tough times given the current air travel restrictions, Greater Bay Airlines could carry out works, including hiring, fleet planning and slots applications, to prepare for the recovery,” Yuen said. Greater Bay Airlines, which is hoping to exploit an opening left by the closure of regional carrier Cathay Dragon, has the financial backing of tycoon Bill Wong Cho-bau. The man behind Shenzhen-based Donghai Airlines has pledged to invest HK$2 billion (US$258 million) in the new operation. At stake is a share of lucrative air routes to the mainland, Southeast Asia and beyond operating from one of the region’s busiest international airports. Cathay’s ‘great resignation’ rolls on as pilots balk at Hong Kong Covid-19 rules Cathay and sister carrier HK Express hold a dominant market share on most available routes, while ailing rival Hong Kong Airlines has been unable to mount a challenge. However, Covid-19 restrictions have largely killed off demand for international travel. Hong Kong International Airport last week reported only 71,000 passengers in January, down 98.8 per cent from the same month in 2020 or before the onset of the pandemic. Cathay’s passenger flight capacity in January was about 2.1 per cent of pre-pandemic levels, with cargo volume dropping to 21 per cent of capacity.

Greater Bay Airlines given go-ahead to fly 104 regional routes, setting up rivalry with Hong Kong flagship carrier Cathay Pacific

Upstart carrier backed by tycoon Bill Wong granted five-year licence for routes covering mainland China, Taiwan, Japan and South Korea, among others Cathay tells Post that active and vibrant market for air services critical to success of Hong Kong as international aviation hub

Upstart carrier backed by tycoon Bill Wong granted five-year licence for routes covering mainland China, Taiwan, Japan and South Korea, among others

Cathay tells Post that active and vibrant market for air services critical to success of Hong Kong as international aviation hub