While the Hong Kong airline market has traditionally been dominated by the full-service business model, locally based carriers in the low-cost or hybrid categories are likely to have increasing influence in coming years. Cathay Pacific plans to grow its HK Express low-cost carrier (LCC) subsidiary, and startup Greater Bay Airlines (GBA) will partially compete in the same segment with a "value carrier" model. The relatively low market penetration of LCCs in Hong Kong should offer opportunities for both approaches. It is still unclear precisely what GBA's model will look like, but it appears to be aiming between full-service and LCC. The carrier is moving closer to beginning service and will initially have a small fleet and network. However, it has larger growth aspirations.
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