HK Express: A Complete History

HK Express (originally known as Hong Kong Express) is one of four main passenger airlines based in Hong Kong – alongside Cathay Pacific, Hong Kong Airlines, and Greater Bay Airlines. It was formed as a new airline in 2004 and today is a subsidiary of Cathay Pacific but operates as a separate brand.

Nội Dung Chính

Founded in 2004

The airline was founded in 2004 by local entrepreneur Stanley Ho. He was a well-known businessman with an extensive background in the gambling industry, especially in Macau. Following his success, he branched out into many more industries in Hong Kong and Macau – including tourism, shipping, and, eventually, airlines.

Hong Kong Express was the fourth passenger airline established in the critical Asian city. Cathay Pacific came first back in 1946 with the DC-3.

Dragonair came next, offering the first real, local competition. It started service in 1985 out of the old Kai Tak Airport. Cathay Pacific took a share in 1990 and fully acquired the airline in 2006. However, the rebranded Cathay Dragon ceased service in 2020. Hong Kong Airlines is the other notable airline, starting up around the same time as Hong Kong Express. It started service in 2003 as CR Airways and became Hong Kong Airlines in 2006 after a change of ownership.

Photo: e X p o s e / Shutterstock

Starting flights in 2005

Hong Kong Express was granted its AOC in July 2005. It initially operated the Embraer E170 regional jet, taking on four aircraft between July 2005 and May 2006. Its first flights were to Taichung, Taiwan, and Guangzhou, China. Later in 2005, service opened up to more Chinese cities, including Hangzhou and Ningbo, as well as Koh Samui, Thailand, and Okinawa, Japan. Several more destinations were added through early 2006.

Acquisition by HNA in 2006

Its life as an independent airline did not last very long. In August 2006, HNA Group, the parent company of Hainan Airlines, which was investing heavily in Hong Kong at the time, took a 45% stake in Hong Kong Express. In the same year, it also took a significant stake in Hong Kong Airlines, which was then rebranded from CR Airways to Hong Kong Airlines. These acquisitions allowed Hainan Airlines to expand internationally from connections in Hong Kong.

Route and fleet expansion continued under the new ownership. Most notably, Hong Kong Express added flights to Beijing and Shanghai in 2008 and expanded its fleet by adding the Boeing 737-800. The first 737 joined the fleet in January 2007, and the airline went on to operate ten examples. Its Embraer aircraft left the fleet by mid-2007.

Rebrand as HK Express

In June 2013, Hong Kong Express announced it would rebrand and start operating as a low-cost airline. It changed its name to HK Express, with a new logo, unveiled in early 2014, designed to incorporate iconic images of the Hong Kong skyline.

There was another significant fleet change at this time: the Airbus A320 replaced the Boeing 737-800s. The airline has taken the A320ceo, A321ceo, A320neo, and recently the A321neo and remains an all-Airbus A320 family operator today.

The first A320ceo joined the fleet in March 2014, and over the following years, the airline took on 15 A320ceo aircraft and 12 larger A321ceo aircraft, introduced from October 2016. Hong Kong Express then ordered the A320neo and A321neo. The first A320neo entered the fleet in December 2016, and the carrier took delivery of 12 in total by 2021. The A321neo is the most recent fleet addition in 2023.

During these years, Hong Kong Express also embarked on an exciting journey with its partnerships. It never joined any of the main three global alliances but was a founding member of the low-key U-Fly alliance. Formed in January 2016, U-Fly brought together several airlines operating between mainland China, Hong Kong, and Southeast Asia. Hong Kong Express joined Lucky Air, Urumqi Air, and West Air as founding members. It left when it was later acquired by Cathay Pacific, however.

These low-cost years were very challenging. In November 2017, the Hong Kong Civil Aviation Department banned the local airline from adding new flights, routes, or aircraft for over five months. This occurred following the cancelation of many flights from Hong Kong over the busy October holiday period. According to the South China Morning Post, this was the harshest penalty handed out by the Hong Kong regulator in 20 years.

Acquisition by Cathay Pacific

In 2019, Cathay Pacific acquired HK Express. This was announced in March of that year, and completed in July, in a deal worth HK$4.93 billion ($628 million). As a result, HK Express left the U-Fly alliance but has not become a member of the oneworld alliance with Cathay Pacific. It remains a wholly owned subsidiary of Cathay Pacific but operates as a separate brand and low-cost carrier.

Cathay Pacific explained how the deal worked for the airline’s expansion – with CEO Rupert Hogg saying:

“The acquisition of HK Express is an attractive and practical way for the Cathay Pacific Group to develop and grow its aviation business over the long term, while also enhancing the competitiveness of its Hong Kong home base as a leading aviation hub.”

Photo: Vincenzo Pace | Simple Flying

HK Express today

Like many other airlines, HK Express suffered significantly during the pandemic. Flight activity in Hong Kong was almost at a standstill, and the airline completely grounded services for some periods.

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Flight activity has resumed well post-pandemic, but Hong Kong has, of course, lagged behind other regions with its delayed re-opening and late lifting of restrictions. By January 2023, Hong Kong passenger traffic was only up to 40% of its pre-pandemic levels. Cathay Pacific expects a return to 70% of pre-pandemic levels by the end of 2023 and a return to pre-pandemic levels in 2024.

HK Express is doing better than average, however. As reported by the South China Morning Post, HK Express projected a return to pre-COVID levels by the end of March 2023 – hitting 80% in February.

Photo: Terry K / Shutterstock

As of April 2023, HK Express was operating 22 of its 27 aircraft (one Airbus A320neo and three A321 aircraft have yet to re-enter service). The airline received its first A321neo aircraft towards the end of March 2023. It’s fitted with customized Recaro-made seating in an all-economy layout with a capacity for 236 passengers. With the new aircraft, the airline also launched a new livery—a mixed purple, white, and cyan-colored livery with a new “e” shaped journey symbol proudly covering the airliner.

Photo: HK Express

The airline has 15 more A321neo aircraft on order, all expected to be delivered over the next couple of years. Mandy Ng, CEO of HK Express, explained the benefit to the airline at the time, saying:

“We are thrilled to welcome the first A321neo to our fleet. As an operator of the A320 Family, we are confident in the A321neo’s game-changing ability to provide more capacity with greater sustainability. At HK Express, the A321neo is key in our efforts to reduce our impact on the environment.”