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7JetSet7 Code: CRY
Status: Operational
Region: CHINA
Country: CHINA
Employees 177
Web: hongkongairlines.com
Email: corpcomm@hkairlines.com
Telephone: +852 3916 3666
Fax: +852 2215 3028

Click below for data links:
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Established in 2001 and started operations in 2003. Founded as "CR Airways," "Hong Kong Airlines" (CRY) is the first jet airplane operator to receive its Air Operator's Certificate (AOC) since Hong Kong became a special administrative region of China. Regional, scheduled & charter, passenger, jet airplane services.

2/F Chunghun Building
12 Donfen Road
Hong Kong International Airport
Hong Kong, China

Hong Kong on July 1st, 1997 became a semi-autonomous territory within Mainland-China. It covers an area of 1,071 sq km, its population is 6.5 million, and its official languages are Chinese and English.

Established in 2001 and 2004, respectively, Hong Kong Airlines Limited (CRY) and Hong Kong Express Airways Limited (HKE) are both commercial airlines based in Hong Kong. With a common shareholder, the two sister airlines provide services with new 737-800 airplanes between Hong Kong and over 30 cities in Asia.

To maximize resources allocation and operational efficiency, some functions of the two sister airlines are combined and under the same management team. The consolidated functions include Sales, Marketing, Administration, Check-in Services, and Ground Handling.

December 2005: Recently, CR Airways (CRY) was a little-known Hong Kong-based regional airline flying a trio of CRJs to destinations in China and the Philippines, but it is on the map now thanks to a multi-billion-dollar ($3 billion) Memo of Understanding (MOU) with Boeing (TBC) covering orders for 30 737-800s and 10 787's. The order is expected to be finalized next year, but in the meantime, Hainan Airlines (HNA) has confirmed that it is in talks to acquire 60% of the tiny carrier. According to "AFX News" in Beijing, Hainan (HNA) may already have completed the acquisition. Financier, George Soros holds a 15% stake in Hainan (HNA).

January 2006: Hong Kong Airlines (CRY) has the rights to fly to 48 destinations.

June 2006: 1st 737-800 (B-KBF) (see photo) delivery.

August 2006: Hainan Airlines (HNA) parent, the (HNA) Group took a 45% stake in Hong Kong Express Airways (HKE) (operates regional jets) following a receipt of approval from the Hong Kong Economic Development and Labor Bureau. The expected move will see the balance of the airline remain with the original shareholders. (HKE), formerly Helicopters Hong Kong, was launched in 1997 and provided regular helicopter services between Hong Kong, Macao and the Pearl River Delta region. Last year, it re-launched as (HKE) with four Embraer E170s operating to five Chinese mainland cities. The move by (HNA) follows its ongoing negotiations to acquire up to 60% of Hong Kong's CR Airways (CRY). Its strategy is to build its presence in Hong Kong and launch more flights into China and internationally. Based in Xian and Ningbo, (HNA) flies to Brussels, Bangkok, Kuala Lumpur, Osaka and Budapest.

September 2006: CR Airways (CRY) took delivery of the 1st 737-808 (34707, B-KBH), Hainan Airlines (HNA) wet-leased. The airline already operates 2 737-800s from (HNA). The first two 737-800s are used on routes to China, Southeast Asia and the Philippines. The new airplane has inaugurated the airline's latest route from Hong Kong to Tianjin (China).

Re-brands from "CR Airways" to "Hong Kong Airlines (CRY).

December 2006: "CR Airways" is now "Hong Kong Airlines" (see logo). 1st airplane to display the new livery is 737-808 (34707, B-KBH) with "Hong Kong Air" - see photo. 737-808 (34709, B-KBI), Icelandair (ICE) leased, Hainan Airlines (HNA) wet-leased.

January 2007: Hong Kong Airlines (CRY), the former "CR Airways," took delivery of its fourth 737-808 (34710, B-KBJ), Icelandair (ICE) leased, Hainan Airlines (HNA) wet-leased. 737-84P (35072, B-KBK), SALE (SIL) leased, (HNA) wet-leased.

March 2007: 737-85R (34803, VT-JGV), SALE (SIL) leased, Hainan Airlines (HNA) wet-leased.

April 2007: 737-808 (34967, B-KXF), Icelandair (ICE)/Hainan Airlines (HNA) wet-leased.

May 2007: 737-808 (34968, B-KXG), Icelandair (ICE)/Hainan Airlines (HNA) wet-leased.

September 2007: 30 orders A320 family airplanes, one Airbus (EDS) corporate jet (ACJ), and 30 orders A330-200s.

737-808 (34971, B-KXH), Icelandair (ICE)/Hainan Airlines (HNA) leased.

October 2007: 737-808 (35076, B-KBM), (TBC)/(HNA) leased.

January 2008: Hong Kong Airlines (CRY) ordered (Trent 700)s to power the 20 A330-200s it signed for at the Paris Air Show. The contract, which includes a "TotalCare" services agreement, is worth approximately $1.2 billion at list prices, Rolls-Royce (RRC) said.

February 2008: 737-8FH (35105, B-KBP), RBS Aerospace/Hainan Airlines (HNA) leased.

March 2008: Hong Kong Airlines (CRY) named former Dragonair (DRG) executive, David Lui, (CEO). Lui was most recently (COO) of Macau Asia Express, which is a planned new Macau-based carrier, that has yet to start operating. Before that, he was with Dragonair (DRG) for nearly ten years as General Manager Engineering. Prior to that, he worked for Cathay Pacific Airways (CAT). Lui replaced Kenneth Thong as (CEO), although Thong is still with the carrier in another role.

April 2008: 737-84P (35274, B-KBQ), (ILF) leased, (HNA) wet-leased.

May 2008: 737-8Q8 (35276, B-KBR), (ILF)/(HNA) leased.

June 2008: Hong Kong Airlines (CRY) operates scheduled regional flights from Hong Kong, together with business (C) charter flights.

(IATA) Code: HX - 851. (ICAO) Code: CRK - (Callsign - BAUHINIA).

Parent organization/shareholders: Robert Yip Kwong (51%); (HNA) Group (45%); & Yu Ming Investments (4%).

Main Base: Hong Kong International Airport (HKG).

Scheduled destinations: Beijing; Changsa; Fuzhou; Hanoi; Hefei; Ho Chi Minh City; Kagoshima; Kunming; Laoag; Luzon Island; Okinawa; Qingdao; Seoul; Shanghai; & Subic Bay.

Code share destinations: Guilin; Guiyang; Haikou; Hangzhou; Nanning; Ningbo; Tianjin; & Xian.

July 2008: At the Farnborough Air Show, Hainan (HNA)-owned Hong Kong Airlines (CRY) picked the (V2500) to power an A319 Corporate Jet equipped with the new "SelectOne" build standard. It is scheduled to take delivery in September 2009.

September 2008: Earlier this year, Hong Kong Express (HKE) and its sister airline Hong Kong Airlines (CRY) opened new service to Okinawa, Kagoshima, Shanghai, Beijing, and Seoul. (CRY) has suspended service to Okayama and Hiroshima.

December 2008: 737-84P (35285, B-KBS), (HNA) wet-leased, ex-(B-5427).

March 2009: Hong Kong visitor arrivals were up +11% in January but only due to the Chinese New Year date shift.

Rolls-Royce (RRC) signed a contract with the (HNA) Group for provision of (Trent 700EP)s to power Hong Kong Airlines (CRY)'s fleet of 20 new A330s. The contract is valued at $1.2 billion at list prices and includes a long-term "TotalCare" services agreement. The first A330 is scheduled for delivery in 2010. (HNA) already operates (Trent)-powered A330-200s and (Trent 500)-powered A340-600s.

May 2009: Hong Kong International airport (HKG) is lowering usage fees and allowing interest-free deferred bill payments. Landing and parking charges will be lowered by -10% for the remainder of 2009, while half of the rental payments due for lounges, office space, ticket counters and storage can be deferred interest free for up to one year. (HKG) traffic fell -7% during the first quarter, with cargo traffic declining -23%.

February 2010: Hong Kong Airlines (CRY) signed a Memo of Understanding (MOU) to purchase six A330-200s, increasing its commitment for the type to 23, Airbus (EDS) announced. (CRY) will use the airplane "to develop new services to destinations across the Asia/Pacific region, as well as to the Middle East and Europe," (EDS) said. President, Yang Jian Hong said (CRY) intends to "establish our company as a premium brand in new international markets." Delivery dates and engine choice were not announced. (CRY) and its Hong Kong Express Airways (HKE) subsidiary currently operate 13 737-800s, according to their website, and also have 30 A320s on order.

Pratt & Whitney (P&W) announced that Hong Kong Airlines (CRY) selected the (PW4170) Advantage 70 to power the six A330-200s it ordered at the Singapore Airshow. The engine deal is worth approximately $470 million at list prices and includes two spares and a fleet management program.

April 2010: 737-84P (37422, B-KBT), BOC Aviation (SIL) leased, Hainan Airlines (HNA) wet-leased.

June 2010: 1st A330-200 delivery, initially flying non-stop to Moscow. These airplanes are equipped with Panasonic Avionics' eX2 In-flight Entertainment (IFE) and communication systems.

737-8AL (37953, B-KBU), Hainan Airlines (HNA) leased. A330-223 (1034, F-WWKO), leased to (HNA).

September 2010: Amadeus has been selected by Etihad Airways (EHD), Hong Kong Airlines (CRY) and Kenya Airways (KEN) to provide real-time travel insurance content, product availability and booking functionality through the airlines' direct booking channels.

Hong Kong Airlines (CRY) has postponed opening new routes to Istanbul and Paris Charles de Gaulle from Hong Kong this year and instead will focus on launching services to Tokyo Haneda on October 31 and Taipei in November. (CRY) Chairman, Yang Jian Hong said the decision was owing to fleet expansion and he reiterated (CRY)’s commitment to long-haul market expansion remained unchanged.

(CRY) opened its first route to Moscow at the end of June and is scheduled to launch Hong Kong – Istanbul service in April 2011. (CRY) ordered 15 A350s and 10 A330s at July's Farnborough Airshow to facilitate its long-haul market expansion. Yang revealed the airplanes would be mainly used for opening new routes to the USA and Africa.

(CRY) operates a fleet of 11 airplanes comprising three 737-300F freighters, five 737-800s, two A330-200s, and one A330-200F freighter.

Airbus (EDS), said that AirCastle (CSL) delivered to Hong Kong Airlines (CRY) the first of three A330-200F freighters. Hong Kong Airlines (CRY) President, Jian Hong said, "With our new freight services we will be able to complement our fast-growing passenger network as we work to build Hong Kong Airlines (CRY) as one of the leading carriers in the Asian region." Hong Kong Airlines (CRY) will operate all three Aircastle (CSL) A330-200Fs as it enters the dedicated cargo market. (CRY) plans to link Hong Kong with destinations across Asia, the Middle East and Europe.

A330-243F (1051, B-LNZ), AirCastle (CSL) leased, ex-(F-WWKU).

October 2010: Hong Kong Airlines (CRY) finalized a contract with Airbus (EDS) for +10 more A330-200s and converted an existing order for 15 A330s to 15 A350 XWBs. Both agreements were announced during the Farnborough International Airshow in July. Deliveries of the A330-200s start in 2012, while (CRY)'s first A350 will arrive in 2018. The Airbus aircraft will be operated across an expanding long-haul network to Europe and North America.

(CRY) President, Yang Jian Hong said the announcement underscores (CRY)'s plans to operate an extensive long-haul network: "The A330-200 is the perfect platform for us to develop these services, while the all-new A350 XWB will become our new flagship towards the end of this decade."

(CRY) has now ordered a total 33 twin-aisle aircraft from Airbus (EDS), comprising 18 A330s and 15 A350s. (CRY) also has 30 single-aisle A320 aircraft on firm order for future delivery.

Airbus (EDS) has tallied 573 firm A350 orders from 35 customers worldwide.

January 2011: Hong Kong Airlines (CRY) launched daily, A330-200 Hong Kong - Singapore Changi service on January 15.

March 2011: At the Hong Kong Airshow, Hong Kong Airlines (CRY) signed a Memo of Understanding (MOU) for 32 787 Dreamliners and 6 777F freighters at list price of $8.5 billion (with discounts about $7.85 billion). The (MOU) will include 30 787-9s for 250 - 290 passengers and 2 787-8 (VIP) airplanes. This brings the total 787s sold up to a total 875 airplanes.

June 2011: Hainan Airlines (HNA) Group subsidiary, Hong Kong Airlines (CRY) plans to place an order for the A380 as it looks to challenge Cathay Pacific Airways (CAT) and further explore the fast-growing Chinese market. (CRY) and Airbus (EDS) are expected to announce the deal at the upcoming Paris Air Show. The number of A380s to be ordered remains unknown. Last year (CRY) finalized a contract with Airbus (EDS) for 10 A330-200s and converted an existing order for 15 A330s to 15 A350 XWBs.

(CRY) was launched in 2006, based on the assets of CR Airways. (CRY) and affiliate Hong Kong Express Airways (HKE) operate a fleet of 18 airplanes comprising five A330-200s, eight 737-800s, two A330-200F freighters and three 737-300Fs on 43 routes to neighboring Asian countries and Moscow.

The (HNA) Group signed a Memo of Understanding (MOU) with Boeing (TBC) on behalf of (CRY) earlier this year for the purchase of six 777Fs, 30 787-9s and two VIP 787-8s. The (MOU) was seen as paving the way for an ambitious long-haul international expansion later this decade.

(CRY) will be the second Chinese carrier to order the A380; China Southern Airlines (GUN) has five on order with deliveries scheduled to start in September.

Cathay Pacific (CAT) (CEO) John Slosar said earlier this month that (CAT) "will have a good look at [potentially ordering] large airplanes, like the 747-8I and A380" within the next two years.

Hong Kong Airlines (CRY) signed orders for 15 747-8I passenger jets at the Paris Air Show.

China's (HNA) Group has ordered 38 Boeing passenger airplanes for its unit Hong Kong Airlines (CRY). The Memorandum of Understanding with Boeing (TBC) comprises 30 787-9s, six 777F Freighters, and two 787-8s in (VIP) configuration, said (HNA).

"We have been waiting for the 787 for a long while, and we are very happy to finally order this airplane," said Adam Tan, a director of the (HNA) Group and Chairman of (HNA) Industrial Holding.

He added that the group, which also owns Hainan Airlines (HNA), China's fourth largest carrier and biggest privately owned airline, hopes to develop Hong Kong Airlines (CRY) into a much bigger player in its market, where it competes with the island's flag carrier Cathay Pacific (CAT).

"There are plenty of routes that are not served and we think that we can grow those. We also believe that there is growing demand for Hong Kong as a hub, and Hong Kong Airlines (CRY) will be able to contribute to that," said Tan.

Hainan Airlines (HNA), he added, could eventually take some of the 787s that the Group has ordered if there is demand for the airplane type. "This order is intended for Hong Kong and the airplanes will be based here, but they could be operated by Hainan Airlines (HNA) if we can work that out," he said. Hainan Airlines (HNA), he added, will continue to grow despite the competition from the three government-owned majors, Air China (BEJ), China Southern Airlines (GUN) and China Eastern Airlines (CEA).

"We are looking to add to our market share. It is not about taking market from those three but also about creating a new market and growing with the higher demand in China, he said.

The Chinese government blocked an order from Hong Kong Airlines (CRY) for 10 A380 airplanes, according to widespread news reports. The order had been scheduled to be announced at the Paris Air Show.

An industry insider confirmed that (CRY) had to postpone the order because Beijing failed to give (CRY) a "green light" in part to express its disapproval of Chinese carriers' inclusion in the European Union (EU) Emissions Trading Scheme (ETS) starting next year. The China Air Transport Association (CATA) noted it would urge the Chinese government to "impose much tougher retaliation measures" against the (EU) over the (ETS), which it said could "severely impact" the "friendly cooperative relations between Chinese and European carriers, as well as European airplane manufacturers." The (CATA) estimated that the (ETS) will cost Chinese carriers CNY800 million/$123.6 million annually.

(CATA) sent representatives to Brussels in May to negotiate with the (EU) on exempting Chinese carriers from the (ETS), but little progress has been made. This month, Airbus (EDS) and the European Airlines Association (EAA) jointly wrote to the (EU) warning it was "madness to risk retaliation" from China over the (ETS). But the (EU) has not backed down as yet.

China Eastern Airlines (CEA) Board Secretary, Luo Zhuping also expressed dissatisfaction with the (EU) (ETS). Citing the scheme, he said (CEA) would prefer the domestically produced (COMAC) (CCC) C919 over Airbus (EDS) airplanes.

September 2011: China Airlines (CHI) on September 21 ended its frequent flyer program bilateral cooperation with Air China (BEJ), and on September 28 terminated its frequent flyer program bilateral cooperation with Hainan Airlines (HNA), including Hong Kong Airlines (CRY) and Hong Kong Express (HKE).

November 2011: Hong Kong Airlines (CRY) is to receive more than >50 new airplanes over the next four years to expand its operations on international and Chinese domestic routes.

(CRY), a division of China's (HNA) Group, expects to receive the airplanes (30 wide bodies and 21 narrow bodies) between 2012 and 2015, to be used on its long-haul and short-haul operations, respectively.

The wide bodies on order are 20 A330-200s, six 787s and up to four A380s. "The group is now positioning to take advantage of the soaring demand for air travel in both the Asia-Pacific region, the fastest growing market for the airline industry, and China, one of the single strongest air travel regions in the world. Among the destinations it is considering for future expansion is Australia," it added.

In March this year, the (HNA) Group signed a memorandum of understanding with Boeing (TBC) for 38 airplanes for Hong Kong Airlines (CRY).

(CRY) Director, Adam Tan had said that the group plans to build Hong Kong Airlines (CRY) into a much bigger player in the market to compete with the territories' flag carrier, Cathay Pacific (CAT).

In the latest announcement, (CRY) said it expects six A330s and eight A320s to enter its fleet next year. Three of the A330s will be configured to seat 116 passengers in an all-club (C) class layout to launch nonstop daily services between Hong Kong and London from March 2012, it added.

In 2013, (CRY) will receive +18 more airplanes (eight A330s, eight A320s and two A380s). In 2014, six A330s, three A320s and two 787s are scheduled to join its fleet. The remaining four 787s, two A380s and two A320s will be added in 2015.

Together with its sister carrier Hong Kong Express (HKE), Hong Kong Airlines (CRY) now operates a fleet of eight A330-200s and 10 737s.

December 2011: Hainan Airlines (HNA) plans to buy a 19.02% stake in sister carrier Hong Kong Airlines (CRY) for 842 million yuan/$132.4 million in a deal that will strengthen (CRY)'s financial position as it aggressively expands its network in the face of growing competition.

The deal, which values Hong Kong Airlines (CRY) at HK$3.59 billion/$461.2 million, comes after Hong Kong's third-largest carrier said in November it was considering delaying its planned $200 million - $300 million Hong Kong initial public offering (IPO) due to the global economic downturn.

January 2012: Airbus (EDS) won a contract from Hong Kong Airlines (CRY) for 10 double decker A380s, valued at about $3.8 billion at list prices. (EDS) plans to deliver the first A380 to the Chinese airline, backed by the (HNA) Group, in 2015, Kenneth Thong, Head Corporate Governance & International Affairs at (CRY) said.

The orders lifts Airbus (EDS)’s A380 backlog to 188 planes, amid doubts surrounding Kingfisher Airlines (KFH)’s ability to proceed with its planned purchase of five A380s. (KFH) has reduced flights and in late 2011 deferred delivery of its orders, which include five Airbus A350-800s, 15 A330s, and 24 A320s to preserve cash. “We’re in constant communication with (KFH) but as always, we can’t give details about talks with customers,” said Justin Dubon, a spokesman for (EDS).

Shares of (KFH) fell the most in three weeks today after the Directorate General of Civil Aviation in India requested that it provide a recovery plan following financial and safety audits. “I don’t see any significant deliveries coming over the next couple of years for (KFH),” said Kapil Kaul, the Indian director for (CAPA) Center for Aviation, which advises carriers. “Certainly not this year, not next year, though if the airline’s performance improves, (EDS) should be able to keep the planes in the backlog.”

The Hong Kong Air (CRY) order hasn’t yet appeared in Airbus (EDS)’s order and delivery figures on the Internet. It will bring (EDS)’s order tally for A380s to 27 won last year, when (EDS) also signed contracts with Japan’s Skymark Airlines (SKM) and South Korea’s Asiana Airlines (AAR) for six each, and a further five for Qatar Airways (QTA).

1st A320-200 (4970, B-LPB - - SEE PHOTO - - "CRY-A320 1ST - 2012-01"), ex-(F-WWID) of 30 orders A320 family airplanes and A330-243 (1277, B-LNJ), ex-(F-WWYJ) deliveries.

February 2012: China has prohibited its airlines from participating in the (EU) Emission Trading Scheme (EU ETS), escalating the row over the new and controversial carbon emissions tax. According to a "Reuters" report, the Chinese government’s State Council issued a statement on its website that said Chinese carriers were prohibited from participating in (EU ETS) without government approval, and they were also barred from using (ETS) as a reason to raise fares.

The Association of Asia-Pacific Airlines (AAPA) Director General, Andrew Herdman told "Reuters" the ruling put Chinese carriers in a difficult position because they have to comply with (EU ETS), or risk large fines, while also being told by their government that they must not comply. “We’re now at the stage that it’s absolutely clear that a whole host of foreign governments are not going to allow the (EU) to do this,” Herdman said.

Chinese carriers are supporting Beijing’s decision to prohibit its airlines from participating in the European Union Emissions Trading Scheme (EU ETS), while still reserving the right to file a lawsuit.

“We are quite supportive of our central government’s decision and we think the real solution should be a global approach through [ICAO],” China Eastern Airlines (MU) Chairman, Liu Shaoyong said. He emphasized that domestic carriers are reserving the right to file a lawsuit against the (EU ETS).

China Air Transport Association (CATA) Director General, Wei Zhenzhong said that “Beijing’s decision reflects Chinese carriers’ wishes and also is quite helpful to protect the real interest of domestic airlines and air travelers.” (CATA) estimated operating expenses of Chinese carriers to increase by +CNY800 million/+$127.2 million annually because of (EU ETS). Air China (BEJ), which operates the most European routes, is expected to see the largest rise in expenses (+CNY200 million). (CEA) is expected to follow at +CNY100 million.

Expenses associated with the (EU ETS) are predicted to keep rising as Chinese carriers open more international routes to Europe to compete with the high speed rail. This year, (BEJ) is scheduled to launch service from Shanghai - Paris and China Southern Airlines (GUN) plans to open a Guangzhou - London route.

Wei said that Beijing’s decision was just the first step in the escalating row over the new controversial carbon emissions tax, as Chinese carriers will most likely be suspended from flying to Europe, a consequence of “not joining (EU ETS).” As a result, the Chinese government is considering counter measures against the (EU ETS) with Russia, India, Brazil, and other countries.

Hong Kong Airlines (CRY) is to launch all-premium class flights on the Hong Kong - London Gatwick route with A330-200s from March 7, becoming the first Chinese carrier to offer an all-premium service.

(CRY) Assistant President, Wang Yankun said (CRY) is to use three new A330-200s with cabin configurations of 34F first- and 82C business-class seats, to operate the service.

(CRY), launched in 2006, operates a fleet of around 18 airplanes with its sister airline, Hong Kong Express Airways (HKE), on over >30 routes. It is expected to take delivery of more than >50 airplanes by 2015 and is planning to launch an Initial Public Offering (IPO) to fund the fleet expansion.

Local industry analysts said (CRY) will face tough challenges on its all-premium flights because of competition from Cathay Pacific Airways (CAT) and British Airways (BAB), as well as the gloomy global economic forecast.

Hong Kong Airlines (CRY) plans to launch an Initial Public Offering (IPO) this year to raise about $200 to $300 million to fund its fleet expansion. (CRY) Chairman, Yang Jianhong said (CRY) is keeping a close watch on the market for the proper timing of the (IPO). “Hopefully, we can do it this year,” he said.

(CRY) which was launched in 2006, operates a fleet of around 18 airplanes with its sister airline, Hong Kong Express Airways (HKE), on more than >30 routes.

The company is scheduled to take delivery of 14 to 15 airplanes this year to open more routes from Hong Kong to other Asian countries and Europe to compete with Cathay Pacific Airways (CAT). (CRY) is expected to take delivery of more than >50 airplanes by 2015.

(CRY) announced earlier this month it would launch all-premium class flights on the Hong Kong (HKG) - London Gatwick (LGW) route with A330-200s from March 7. The (HKG) - (LGW) “golden” route is controlled by (CAT) and British Airways (BAB).

Yang said (CRY) plans to include sister carrier, Hong Kong Express Airways (HKE) when it launches the (IPO). (HKE) operates five airplanes and plans to transition to a low-cost carrier (LCC).

March 2012: Hong Kong Airlines (CRY) launched three new routes out of its Hong Kong (HKG) hub on March 1; two to Taiwan and one to Mainland China. With 21 weekly flights, (CRY) moved into the intensely competitive route to the Taiwanese capital Taipei (TPE), using A330-200 airplanes. Competition comes from Cathay Pacific (CAT)’s 108, China Airlines (CHI)’s 78, (EVA) Air’s 49 and Dragonair (DRG)’s also 21 weekly flights. Also competitive is Hong Kong Airlines (CRY)’s other new Taiwanese route to Kaohsiung (KHH), which (CRY) now operates six times weekly with 737-800s. It is operated in competition with Dragonair (DRG)’s 41, China Airlines (CHI)’s 18 and Mandarin Airlines (MDN)’s 11 flights a week. (CRY)’s new Mainland China service is a daily 737-500 operation to Nanjing (NKG), which competes with (DRG)’s double daily operation and (CEA)’s also daily flights.

(CRY) launched its first all-premium route on March 7 when (CRY) departed Hong Kong (HKG) with its new 116-seat A330-200s for London Gatwick (LGW), where it arrived the following morning. Three A330-200s, which are equipped with 34 flat-bed and 82C ‘regular’ business class seats, are used to operate the route with daily frequencies, since, notably, the route is operated overnight in both directions. This means that (CRY) chose to keep the airplanes on the ground during the day at each end. While the route made (CRY) the only airline to connect the two airports, indirect competition at London Heathrow currently comes from five other airlines. Cathay Pacific (CAT) operates 4x-daily flights, British Airways (BAB) 2x-daily, Virgin Atlantic (VAA) daily, Qantas (QAN) 6x-weekly, and Air New Zealand (ANZ) 5x-weekly. However, (QAN) is dropping its services on the route at the end of this scheduling season at the end of the month. Gerard Clarke, Hong Kong Airlines (CRY)’s General Manager UK, commented the new route: “We have gained a reputation for outstanding service over the past five years and we look forward to extending this to our new flagship route, connecting two global business capitals of the world. The concept for the all Club Class airplane will provide passengers with a private jet style ambience and an exceptional crew to guest ratio, and we are confident that we have the right knowledge and experience to make a success of the new all Club Class daily service.”

June 2012: On June 17, Hong Kong Airlines (CRY) launched 2x-weekly flights from Hong Kong (HKG) to Taiyuan (TYN) in Mainland China using a 737-800. The route is already served by China Eastern Airlines (CEA), also 2x-weekly. Last year, Taiyuan Wusu Airport handled 5.88 million passengers (+11.0%), making it the 28th busiest airport in China.

What to make of the mysterious Hong Kong Airlines (CRY), which is growing rapidly but discloses little about its business? According to Hong Kong’s "South China Morning Post," (CRY) (which is backed by Hainan Airlines (HNA)) is running into trouble. (HAECO), a maintenance partner, has reportedly withdrawn its services due to unpaid bills, and flight attendants (CA) have been asked to clean planes, replacing cleaners from an outsourced vendor. The paper also
claims (CRY) is “hemorrhaging money” on its recently launched all-premium wide body flights to London Gatwick, which are leaving “virtually empty.” Cathay Pacific (CAT) (which witnessed the death of challenger Oasis Hong Kong (OHK) a few years back) sure won’t shed any tears if (CRY) meets the same fate.

Yangtze River Express (YTH) has taken delivery of the 1st of 5 A330-200F freighters (1175, B-5900). Sister carrier, Hong Kong Airlines (CRY) already operates 3 A330F freighters from Hong Kong.

July 2012: A330-343X (1325, B-5903), ex-(F-WWTL), leased to Hainan Airlines (HNA).

August 2012: The Hong Kong Civil Aviation Department (CAD) has frozen the fleet expansion plans for Hainan Airlines (HNA) subsidiary, Hong Kong Airlines (CRY) due to safety concerns.

According to the (CAD), (CRY) would have to meet all safety requirements for operating a larger fleet as well as stricter conditions to (CRY)’s air operator’s certificate (AOC) limiting the types of airplane (CRY) can fly.

This means (CRY) cannot add any airplanes without prior approval from the (CAD).

“With a very rapid expansion of airplane fleet in recent years, the (CAD) considers that it is time for (CRY) to catch up with its current fleet size by consolidating their existing operations,” (CAD) said.

(CRY) operates a fleet of 21 airplanes, comprising seven A330-200s, one A320, three A330-200F freighters, eight 737-800s and two 737-300Fs.

(CRY) said it has no plans to cancel any airplane orders but instead would phase out its older airplanes.

(CRY) in 2010 finalized an order for 25 Airbus (EDS) airplanes, comprising 15 A350-900 and 10 A330-200s. The 15 A350-900s are scheduled to be delivered in 2018; the 10 A330-200s are expected to begin delivery this year.

(CRY) also placed a $3.8 billion order for 10 A380s, which are scheduled for delivery from 2015. However, the A380 order is in jeopardy as the Chinese government protests the European Union Emissions Trading Scheme (EU ETS) tax.

(CRY) has apparently pulled the plug on its loss making idea of operating Business Class (C) only A330-200s between Hong Kong Chep Lap Kok International (HKG) and London Gatwick (LGW) airports with the last flight now scheduled to operate on September 3 according to "Airline Route." It has three A330-200s specifically configured for this service with 34 Club Premier and 82 Club Classic seats that are now expected to be reconfigured and redeployed on other services from Hong Kong Chep Lap Kok International airport (HKG).

(CRY) said the decision was taken following a review of its European strategy as a result of the continuing weak economic outlook in Europe.

(CRY) President, Yang JianHong said: “We believe that a regional model focused on Asia Pacific is most appropriate for Hong Kong Airlines (CRY) at this stage of our growth. Our key focus will be building our regional network and strengthening our business across China, South East Asia, Japan and Korea.”

Yang said the three 116-seater all-business (C) class A330-200s that operate the London route would be redeployed to charter flights.

Later, it was stated that Hong Kong Airlines (CRY) has been banned by the Civil Aviation Department (CAD) of Hong Kong from adding additional new airplane types to its (AOC). According to a report by news agency "(AFP)" the (CAD) has told Hong Kong Airlines (CRY) it needs to first consolidate its existing operations before being allowed to expand to additional airplane types again. It currently operates three A320-200s, nine A330-200s, four A330-200Fs, four 737-800s and four 737-300Fs, but also has A330-300s, A350-900 XWBs, A380-800s and 777-200Fs on order.

October 2012: Dragonair (DRG) has resumed operations on the route between its Hong Kong (HKG) hub and Haikou (HAK) on Chinese tropical island of Hainan. On October 28, (DRG) began operating daily with A320s, competing with Hong Kong Airlines (CRY)’s also daily flights. Dragonair (DRG) has operated the route in the past, but dropped it in 2008.

November 2012: Hong Kong Airlines (CRY) plans to use the first of seven A330-300s it will shortly take delivery of on one of its three daily services between its home base in Hong Kong and Beijing Capital (PEK). (CRY) currently has the first A330-300 rotation on the route scheduled for December 10.

December 2012: Hong Kong Airlines (CRY)’s affiliate, Hong Kong Express Airways (HKE) will rebrand as a low-cost carrier (LCC) by mid-2013. (CRY) President, Yang Jianhong said the (LCC) will confront declining international market demand.

Hong Kong Express (HKE) and Hong Kong Airlines (CRY), both subsidiaries of Hainan Airlines (HNA), were launched in 2004 and 2006, respectively, and merged. Even though they are led by the same management staff, both carriers own separate air operating licenses (AOC)s.

(HKE) offers passenger service to destinations in China, Japan, South Korea, Thailand, Indonesia, and the Philippines with a fleet of Boeing 737NG airplanes.

Next year, Hong Kong Express (HKE) is expected to face fierce competition from Jetstar Hong Kong, the (LCC) launched by China Eastern Airlines (CEA) and Jetstar (IMU). (HKE) plans to operate three A320s initially and expand its fleet to 18 A320s by 2016. It will offer passenger service to Greater China region (China’s mainland, Hong Kong, Macau, and Taiwan), Japan, Korea, and Southeast Asian countries.

China’s Shanghai-based (LCC), Spring Airlines (CQH) also plans to launch a low-cost subsidiary in Hong Kong in the near future.

Hong Kong Airlines (CRY) is considering changing out its A380 orders in favor of the A330 and delaying the A380 delivery date. (CRY) is reevaluating its A380 orders due to a decline in market demand, especially on its long-haul routes. (CRY) suspended its all-business (C) class flights on Hong Kong - London routes on September 10.

Hainan Airlines (HNA) Group Chairman, Chen Feng said the company is in negotiations with Airbus (EDS) but no final decision has been made.

Hong Kong Airlines (CRY) placed an order for 10 A380s last year, which are scheduled to be delivered from 2014.

The Chinese government reportedly blocked the order earlier this year, in part to express its disapproval of Chinese carriers' inclusion in the European Union (EU) Emissions Trading Scheme (EU ETS), which has been suspended one year to allow time for (ICAO) to finalize a global scheme.

January 2013: Hong Kong Airlines (CRY) inaugurated daily flights on the 1,800 km route from its Hong Kong airport (HKG) base to Kota Kinabalu (BKI) in Malaysia on January 25. Services to this popular tourist gateway to Borneo, which is (CRY)’s only Malaysian destination, are operated using A320s. Competition on the route comes from AirAsia (ASW) (2x-daily frequencies), Malaysia Airlines (MAS) (9x-weekly), and Dragonair (DRG) (8x-weekly).

March 2013: Hainan Airlines (HNA) subsidiary, Hong Kong Airlines (CRY) is shifting its focus from Western countries to mainland China and Southeast Asian countries. (CRY) is scheduled to add flight frequencies on its Hangzhou, Fuzhou, Kunming, Nanjing, Haikou, Sanya, Guiyang, Taipei and Bangkok routes at the end of the month. (CRY) also plans to boost flight frequency on the Hong Kong - Xiamen route in May. It launched all-premium class flights on the A330-200 Hong Kong - London Gatwick route in March 2012, but suspended all premium service in September owing to low load factors resulting from high operating costs and the sluggish European economy. “So far [the] European economy still hasn’t fully recovered, but Asia-Pacific is still growing very fast, that’s why we shifted our focus on Asia market centered on China’s mainland.”

According to (IATA), Asian-Pacific airlines are expected to take in a +$4.2 billion net profit in 2013. Carriers in the region are expected to see average demand growth of +4.9%.

May 2013: Hong Kong Airlines (CRY) inaugurated services on the 2,100 km route from its Hong Kong (HKG) base to Hohhot (HET), the capital of the Inner Mongolian Autonomous Region in north-central China. Beginning on May 1, 3x-weekly flights depart on the route, and all are operated using A320s.

June 2013: A320-214 (5626, B-9949), leased to West Air ((IATA) Code: PN; (ICAO) Code: CHB - (Callsign - WEST CHINA) (CHO).

July 2013: Hong Kong Airlines (CRY) inaugurated operations on the 4,800 km route from Hong Kong (HKG) to Male (MLE) in the Maldives. Starting on July 10th, (CRY) offers 4x-weekly, A330-200-operated frequencies on the route, in competition with Mega Maldives (MEG)’s 3x-weekly service.

It is better late than never for Hong Kong to use its proximity and scale with mainland China to cater to the booming China - Maldives market. Chinese nationals are the single largest inbound group to the Maldives, with 230,000 visitors in 2012 (more than double the next largest market, Germany, with 98,000 visitors in 2012). A few weeks after Hong Kong Airlines (CRY) resumed service to Male, the main gateway of the Maldives, Cathay Pacific (CAT) on July 22, 2013 opened reservations for four weekly flights from October 27, 2013. Reflecting inertia at the legacy carrier, (CAT) spent over a year deliberating on whether to serve the Maldives, while Singapore Airlines (SIA) and charter carrier (MEGA) Maldives (MEG) effectively cleaned up the market.

Cathay (CAT)'s services will bring stiff competition to (SIA). (CAT) and its Dragonair (DRG) subsidiary have a far deeper China network than (SIA) and its SilkAir (SLK) subsidiary, and connecting through Hong Kong is shorter than via Singapore. But (SIA) has a strong frequency advantage (double daily) and uses regional airplanes light on premium seats, whereas (CAT) will use a long-haul airplane heavy on premium seats.

Although there is considerable wealth in the outbound Chinese leisure market, it is still price sensitive and primarily package-driven. Existing operators Hong Kong Airlines (CRY) and (MEGA) Maldives (MEG) should consider gaining scale to reduce unit costs.

August 2013: Aircastle (CSL) sold three A330-200Fs (1051; 1062; 1115) airplanes in the second quarter of this year to the (HNA) Group, said the lessor's Chief Executive Officer (CEO), Ron Wainshal. The airplanes were delivered new to Hong Kong Airlines (CRY) under 12-year leases between September 2010 and July 2011.

October 2013: Hong Kong Airlines (CRY) introduced daily flights on September 20 between Hong Kong (HKG) and Chiang Mai (CNX) in Thailand. A320s will be operated on the 1,630 km route, which is already served 5x-weekly by Cathay Pacific Airways (CAT) subsidiary, Dragonair (DRG). From the beginning of the winter season, Hong Kong Airlines (CRY) will transfer this route to sister airline Hong Kong Express (HKE), which is being rebranded as the first Hong Kong-based low cost carrier (LCC), and will be serving 5 destinations initially, with Osaka and Tokyo flights being added in early November.

January 2014: Hong Kong Airlines (CRY) inaugurated daily flights on the 1,800 km route from its Hong Kong (HKG) base to Kota Kinabalu (BKI) in Malaysia on January 25th. Services to this popular tourist gateway to Borneo, which is (CRY)’s only Malaysian destination, are operated using A320s. Competition on the route comes from AirAsia (ASW) (2x-daily frequencies), Malaysia Airlines (MAS) (9x-weekly), and Dragonair (DRG) (8x-weekly).

March 2014: Hong Kong Airlines (CRY) on March 17th began 3x-weekly flights between Hong Kong (HKG) and Ho Chi Minh City (SGN) in Vietnam. (CRY) operated A320s on the 1,505 km route, and faced direct competition from Cathay Pacific Airways (CAT) (15x-weekly flights), Vietnam Airlines (VIE) (10x-weekly flights) and United Airlines (UAL) (daily flights). This becomes (CRY)’s 22nd destination from Hong Kong, and second in Vietnam, as it already serves Hanoi with daily flights. In the 1st 2 months of 2014 passenger numbers at Hong Kong Airport have risen by +6.6%. In the last 12 months, the airport has handled just >60 million passengers.

April 2014: Hong Kong Airlines (CRY) announced the sales update of its Kagoshima and Tianjin routes. (CRY) launched Kagoshima and Tianjin routes on March 30 and March 31 respectively, and both recorded strong sales since their inaugural flights. The average expected passenger load factor ("PLF") of the Kagoshima route from April to June reached 80% LF, while the corresponding expected (PLF) of the Tianjin route is 80 - 85% LF. In view of the brisk demand, (CRY) will increase the frequency of the Tianjin route to a daily flight by mid-May.

Mr Alex Wu General Manager of the Hong Kong Sales Office, said, as the only direct route between Hong Kong and Kagoshima, the Kagoshima route has recorded vigorous sales since its launch. Foreign independent tourists from Hong Kong constitute the majority of the customer source.

Meanwhile, the feedback from travel agencies shows increasing group orders as well. Benefiting from the recent value tickets promotion, the ticket sales of some flights even reached >90%. Going forward, Hong Kong Airlines (CRY) will corporate with the Kagoshima government to develop more products featuring Kagoshima's exclusive scenery so as to cater to their customers.

The launch of the Tianjin route further enhances communications between the 2 cities. Leveraging Hong Kong's favorable location as an international air hub, passengers from Tianjin are able to transfer to popular travel destinations, including Bali, Taiwan and Vietnam, via the route network of Hong Kong Airlines (CRY). To meet the growing demand of the passengers, (CRY) plans to increase the frequency of the Tianjin route to 5x-weekly (with each on Monday, Tuesday, Wednesday, Friday and Saturday) starting from April 19, and further to daily flights starting from May 12.

The current network of Hong Kong Airlines (CRY) covers about 24 hot pick, business and leisure travel destinations in South East Asia and China. By expanding its fleet, (CRY) will continue to enhance its network and boost capacity, offering our customers more diverse travel options.

HK Express (HKE) is looking to add a 2nd base to its operations in 2 to 3 years time. The move comes in the wake of news that its Hong Kong Chep Lap Kok hub will soon reach saturation with its current capacity sitting on 90% of maximum.

The Hong Kong Airlines (CRY) subsidiary officially unveiled its new Low Cost Carrier (LCC) product in January of this year with 6 A320-200s serving Chiang Mai, Fukuoka, Kota Kinabalu, Kunming Changshui, Osaka Kansai, Penang, Phuket, Seoul Incheon, Taichung Ching Chuan Kang, and Tokyo Haneda.

Despite two fully operational 3,800 m runways, the Hong Kong Airport Authority estimates that the airport will reach its maximum runway capacity sometime around 2020 if no extra runway is added.

Fellow carriers Cathay Pacific (CAT) and Dragonair (DRG) have used the Hong Kong airport's lack of remaining capacity as part of their arguments against the licensing of Jetstar Hong Kong.

May 2014: Hong Kong Airlines (CRY) began 3x-weekly, Hong Kong - Incheon, A330-200F cargo service.

Hong Kong Airlines (CRY) and Air India (AIN)/(IND) have signed a code share agreement that the carriers said is just the start of cooperation between them. Under the agreement, which will take effect from June 10, (CRY) will place its HX code on Air India (AIN)/(IND) Boeing 787 flights between Hong Kong and 3 destinations: Delhi, Osaka Kansai, and Seoul Incheon.

Hong Kong Airlines (CRY) Commercial Director Li Dianchun said, “The code share agreement broadens our reach to India, Japan and Korea, making it a significant landmark in Hong Kong Airlines (CRY)’s network development. And we look forward to further cooperation with Air India (ain)/(ind) in the future.” Air India (AIN)/(IND) Commercial Director Pankaj Srivastava added, “The present code share with [Hong Kong Airlines (CRY)] is only the beginning of the partnership between the 2 airlines; we look forward to an expansion of the code share to also involve the transfer of [Air India (AIN)/(IND)] passengers on [Hong Kong Airlines (CRY)’s] network.”

July 2014: Hainan Airlines (HNA)'s subsidiary, Hong Kong Airlines (CRY) has restarted its plan to launch an initial public offering (IPO) on the Hong Kong Stock Exchange to raise approximately $500 million for fleet expansion.

(CRY) had planned to launch an (IPO) in 2012, but it stalled for unspecified reasons. (CRY) is expected to launch the (IPO) this year, but it hasn’t submitted an (IPO) application to the Hong Kong Stock Exchange.

Hong Kong Airlines (CRY) operates a fleet of 23 airplanes and plans to introduce 3 airplanes this year and 6 next year. (CRY) has maintained a consecutive profit for 3 years and reported an operating profit of +CNY200 million/+$25.7 million last year. Passenger boardings climbed +35% to 4.8 million in 2013. This year it has opened 2 new routes from Hong Kong to Kagoshima and Tianjin, and has boosted frequencies on flights to Beijing, Hangzhou and Okinawa.

August 2014: Air Seychelles (ASY) and Hong Kong Airlines (CRY) begin code sharing September 12. Under the code share agreement, (ASY) will place its code on (CRY)'s flights between Hong Kong and Bangkok, Thailand. In return, (CRY) will place its code on (ASY)'s flights between the Seychelles and Hong Kong, as well as between Hong Kong and Abu Dhabi.

September 2014: Hong Kong Airlines (CRY), the regional carrier partly owned by Chinese airline-to-logistics conglomerate, the (HNA) Group, filed for the city's 1st-ever dual currency initial public offering (IPO), looking to tap a massive pool of yuan deposits in local banks.

(CRY), which operates 23 airplanes and flies to almost 30 cities around Asia, hired JPMorgan as sole sponsor of the (IPO), according to the draft prospectus, which contained no details on the deal size or number of shares on offer.

The company could raise about US$600 million to buy new airplanes, according to a source with direct knowledge of the plans.

The (IPO) would be a landmark deal for Hong Kong, which is keen to bolster its position as a global hub for trading in the Chinese currency and established a framework for shares to also trade in yuan in 2011.

Yuan deposits in the city, held mainly by Hong Kong residents, totalled about 937 billion yuan/US$153 billion at the end of July.

So far, only two companies have taken advantage of the framework with toll-road operator Hopewell Highway Infrastructure Ltd selling some secondary shares in yuan and Hui Xian Real Estate Investment Trust selling (IPO) shares in just yuan.

December 2014: Hong Kong Airlines (CRY) began 2x-weekly, Hong Kong - Changchun A320 service on December 29.

March 2015: A320-214 (6570, B-1692), ex-(B-OOOV) delivery, and leased to Tianjin Airlines (GCR).

April 2015: Hong Kong Airlines (CRY) celebrated the inauguration of its flight service between Hong Kong and Nanchang, and is currently the only airline in Hong Kong operating this service. An Airbus A320 is deployed on the route, operating on Mondays, Wednesdays, Fridays and Sundays. To commemorate the official launch of the new route, (CRY) has held celebrations at Hong Kong International Airport and the destination airport.

Before departure, (CRY) invited 2 Nanchang ambassadors dressing in traditional Chinese attire, to present every passenger an inaugural flight certificate and a souvenir in gratitude for their support to the new route. Upon arrival at Nanchang Changbei International Airport, the passengers and flight crew (FC) received a warm welcome from the management of the airline (Commercial Director Li Dianchun; Director Service Delivery Department Stanley Kan; and Assistant Director Commercial Department Michael Burke. The management of the Jiangxi Airport Group Company also joined to greet the inaugural flight at the airport.

Mr Li Dianchun Commercial Director of (CRY) said, "We are very happy to launch this direct flight service to extend our footprint to Nanchang. Nanchang is the capital city of Jiangxi Province with a long history, booming economy and prosperous culture that attract tourists at home and abroad. Passengers from Nanchang can enjoy the flexibility to transit at the international hub, Hong Kong, and travel to SE Asia or even a wider area. We hope the new route will cater to the increasing market demand, bringing convenience to both the cities in various aspects like business, social life and cultural communications."

The inaugural flight marked a further step in expansion of (CRY)'s China Network. (CRY)'s current scheduled passenger services cover close to 30 destinations in the Asia-Pacific region. Popular destinations include Beijing, Shanghai, Taipei, Bangkok, Okinawa, Sapporo, etc.

June 2015: Hong Kong Airlines (CRY) is planning to venture into the long haul services market with the launch of flights to Australia, (CRY) President Zhang Kui, has said. Zhang said the roll out would likely come before year end but did not specify which destinations his airline would serve. The Hong Kong - Australia market is currently dominated by Cathay Pacific (CAT) and Qantas (QAN).

Hong Kong Airlines (CRY) currently offers flights to China, Japan, Thailand, Indonesia, Vietnam, India, and Singapore using a fleet of 30 Airbus aircraft including 13 A320-200s, 9 A330-200s, 3 A330-300s, and 5 A330-200Fs.

(CRY) operates 30 airplanes to 37 destinations in 9 countries, on 30 routes and 111 daily flights.

August 2015: News Item A-1: Hong Kong Airlines (CRY) plans to open a new route from Hong Kong to Australia on January 6, 2016 using Airbus A330-300 aircraft. Initial trial services will offer charter services through March 2016. The new schedule will offer a 3x-week service from Hong Kong Chek Lap Kok Airport to Coolangatta Airport, Gold Coast, Australia, then onward to Cairns International Airport before flying back to Hong Kong.

(CRY) said the new service is “long anticipated” and would enable the full-service carrier to leverage its connections in Asia to popular Australian tourist destinations. “The new service will be well received by passengers from Beijing, Shanghai, [2nd tier cities], Tianjin, Chengdu, Nanjing, Hangzhou, Okinawa, Bangkok, and Taipei.”

The move comes as Qantas (QAN)’s low-cost offshoot, Jetstar (IMU) has been denied access to Hong Kong as a base in Asia. (QAN) (CEO) Alan Joyce described the decision to disallow Jetstar Hong Kong to start operations as “going in the opposite direction,” adding that it was “shutting the door to new competition” and would only serve vested interests.

In the short term, Hong Kong Airlines (CRY) will be not be able to fly to primary airports at Brisbane, Melbourne, Perth, and Sydney, as the major Hong Kong carriers dominate available slots there. However, Chinese carriers are known to be looking at secondary Australian cities including Hobart, Adelaide and other destinations such as Darwin under the existing air services agreement (ASA) between the two countries.

The (HNA) Group subsidiary operated all-premium Hong Kong Chek Lap Kok - London Gatwick flights up until September 2012, when poor returns forced it to reconsider its business plan and focus on the regional Asian market instead.

(CRY) is a partially owned subsidiary of China-based Hainan Airlines (HNA) and flies an all-Airbus fleet of 25 A330 and A320 aircraft. It has an order for 15 A350 XWBs in the pipeline.

News Item A-2: Australian flag carrier, Qantas (QAN) will not pour any more funding into the long-delayed Jetstar Hong Kong low-cost carrier (LCC) subsidiary, according to (QAN) (CEO) Alan Joyce. "From a (QAN) perspective, we won't be investing any more funds in this airline," Joyce said.

The attempt to start a Jetstar Hong Kong operation in partnership with China-based China Eastern Airlines (CEA) and Hong Kong transport investment company, Shun Tak Holdings has been dogged by opposition from local operators (notably Cathay Pacific (CAT) and Hong Kong Airlines (CRY)).

The application has awaited a definitive answer from the aviation regulator since March 2012, and was given the final thumbs down in June this year. The Hong Kong Air Transport Licensing Authority refused giving an air operator’s certificate (AOC) to Jetstar Hong Kong, because it did not comply with a requirement to have its "principal place of business in Hong Kong."

Following appeals and further submissions from (CAT) and (CRY), a panel of public inquiry finally decided that any Jetstar (IMU) subsidiary would likely be "unduly influenced" by (QAN) and (CEA).

(QAN)'s Joyce has said the decision was "blatant protectionism" by local regulators under pressure from local airlines. "There was a blatant application of rules for Jetstar Hong Kong that did not apply to other carriers," he said. "We made sure that we met all of the rules that apply; if those rules were applied to (CAT), it would not be able to operate in Hong Kong today," he said.

It is not yet clear if (CEA) and Shun Tak Holdings will look for another partner to replace (QAN), although they still have 1 aircraft on their books. The original partners ordered 9 new A320s at a cost of >$60 million for the venture. The remainder have been leased out to other operators.

October 2015: "Hong Kong Airlines Launches Hong Kong's First Direct Flight to Krabi, Thailand, by WCARN.com, October 26, 2015.

Commencing on November 13, Hong Kong Airlines (CRY) will officially launch daily flight service to Krabi, Thailand. An all-economy (Y) class Airbus A320 aircraft will be deployed on the Krabi route. (CRY) will be the only carrier providing direct link between Hong Kong and Krabi.

Situated at the southern province on Thailand's Andaman seaboard, Krabi retains most of the primitive natural landscape. The fertile farmlands are perfect for producing a variety of natural agricultural produce, such as rubber trees, palms, coconuts and coffee. Krabi is becoming a new popular tourist destination and attracts tourists who want a break from the hustle bustle of big cities. The city is heavily surrounded by clean and clear sea water, tranquil beaches and bays, lush mountains, colorful coral reefs and a wide range of sea creatures, as well as more than >130 nearby large and small islands. Cave exploration, rock climbing, kayaking, sea fishing and snorkelling are also among the top activities in Krabi. In addition, Krabi is famous for quality and reasonably priced Thai cuisine among the SW areas in Thailand, especially the great seafood options which allows you to fully relax and enjoy your vacation in this paradise.

Mr Li Dianchun Commercial Director of Hong Kong Airlines (CRY) said, "Hong Kong Airlines (CRY) attaches great importance to its Thailand market. We are delighted to further expand our Thailand network to Krabi, which is the perfect paradise for a vacation. Starting this route allows us to offer a convenient, direct service for visitors from Hong Kong to fully enjoy the gorgeous beaches and sunshine in Krabi."

The flight schedule for Krabi route is as follows (*All Times Local):
Flt HX755: Hong Kong to Krabi, 12:50 am to 3.30 am, daily;
Flt HX756: Krabi to Hong Kong, 4:30 am to 8:50 am, daily.

With the launch of the Krabi service, complemented by the existing 6 daily flights to Bangkok, Hong Kong Airlines (CRY) will operate a total of 49 weekly frequent flights between Hong Kong and Thailand, starting from November this year, further strengthening its route network in SE Asia. See attached - - "CRY-Visit Krabi-A/B."

December 2015: Hong Kong Airlines (CRY) will start 2x-weekly, Hong Kong - Kumamoto Airbus A320-200 flights from mid-December 2015.

January 2016: News Item A-1: Hong Kong Airlines (CRY) has ventured into the Australian market with the introduction on January 8 of a new service which operates from Hong Kong (HKG) to the Gold Coast (OOL), then to Cairns (CNS) and back to Hong Kong. The 3x-weekly service is operated by (CRY)’s A330-300s. Competition is provided by Cathay Pacific Airways (CAT) which operates 4x-weekly on the Cairns route.

News Item A-2: A330-343E (1369, B-LNN), returned from Hainan Airlines (HNA) lease.

February 2016: News Item A-1: Hong Kong Airlines (CRY) recently announced that it will change its seasonal flights from Hong Kong to the Gold Coast and Cairns in Australia into year-round ones.

The company launched the seasonal flights this January to attract Chinese visitors to explore Australia. But under its new plans, it will have 2 year-round flights per week from early April and then push them up to 3 per week from July.

Li Dianchun Chief Commercial Officer (CCO) of Hong Kong Airlines (CRY) said the service will further enhance cultural, tourism and business exchanges between China, Asia, and Australia.

According to Tourism and Events Queensland, visitors from the mainland, Hong Kong, and Taiwan, spent almost US$1.2 billion in Queensland in the year to September 2015.

News Item A-2: Hong Kong Airlines (CRY) has launched its inaugural flight to Phnom Penh. (CRY) touched down in the Cambodian capital for the 1st time on February 27, 2016, marking the start of a new 3x-weekly scheduled service.

Flights will now depart Hong Kong International Airport every Tuesday, Thursday and Saturday at 2:00 pm, arriving in Phnom Penh at 3:45 pm. The return flights then leave at 5:20 pm and arrive back in Hong Kong at 9:10 pm.

All flights will be operated using Hong Kong Airlines (CRY)'s 152-seat, 2-class Airbus A320 aircraft. "We are glad to see overwhelming response from travellers for the launch of Phnom Penh route. No matter for business or leisure travellers, the booming economic growth in Cambodia and distinctive tourist attractions like royal palaces are greatly attractive. With this new route, we hope to show passengers from around the world the beauty and ancient charm of Phnom Penh, and promote the connection between 2 cities," said Li Dianchun, (CRY)'s Chief Commercial Officer.

(CRY)'s route network now covers 30 cities across the Asia Pacific region.

News Item A-3: Hong Kong Airlines (CRY) will extend 2x-weekly, Hong Kong - Queensland - Cairns from seasonal to year-round on March 27.

News Item A-4: (AMECO) Beijing (BEJ) and Hong Kong Airlines (CRY) have signed a long-term agreement on Airbus A330 heavy maintenance. (AMECO) will provide heavy maintenance for the (CRY)’s A330s from 2015 to 2017.

March 2016: News Item A-1: Hong Kong Airlines (CRY) began 3x-weekly, Hong Kong - Phnom Penh service. It also began daily, Hong Kong - Okayama Airbus A320 service on March 28.

News Item A-2: Hong Kong Airlines (CRY) announced the co-branding partnership with the Shin Yeh Restaurant Group to offer a variety of Taiwanese cuisine to business (C)-class passengers on Hong Kong Airlines (CRY) Taipei - Hong Kong service from April 1.

News Item A-3: "Hong Kong Airport Midfield Concourse Begins Full Operations" by (ATW) Linda Blachly, March 31, 2016.

Hong Kong International Airport (HKIA) has opened its new Midfield Concourse (MFC) - see "CRY-2016-03 - Midfield Concourse.jpg."

As the 1st and 1 of the main carriers using (MFC), Hong Kong Airlines (CRY) has >80% of its flights (including both departure and arrival) using (MFC).

(MFC) was completed on schedule on December 28, 2015 and opened for a trial run. (CRY) said its flight HX684 to Okinawa was the very 1st departure flight at (MFC).

(CRY) President, Zhang Kui said, “In the past few months, we gradually increased the number of flights at (MFC) to around 83% currently, making us one of the major airlines at (MFC). This change has helped enhance our on-time performance and further improved the overall passenger experience significantly.”

(HKIA), which in January reported a record +8.1% increase in passenger numbers in 2015, had warned the facility could be reaching its maximum capacity. The airport was named (ATW)’s Airport of the Year in January.

Hong Kong Airlines (CRY)’s brand new (VIP) lounge at (MFC) is expected to open within the year. The new (VIP) lounge at (HKIA) is twice the size of the current (VIP) lounge “Club Bauhinia,” which is located between Gate 23 and 25 on the Departure Level of Terminal 1. With a focus on environmental-friendly initiatives, (CRY) said it “will be equipped with advanced facilities, serving plentiful cuisines, all presenting distinguished quality service to Hong Kong Airlines (CRY)’s passengers departing from (MFC).”

April 2016: News Item A-1: Hong Kong Airlines (CRY) began daily, Hong Kong - Okayama service. Also to Japan including 5x-weekly, Sapporo, 3x-weekly, Kagoshima, 2x-weekly, Miyazaki, and Kumamoto.

News Item A-2: Hong Kong Airlines (CRY) will launch the Self-Bag Drop (SBD) service for passengers departing from Hong Kong International Airport (HKIA).

6 (SBD) machines will be installed at (CRY) counters at Aisle K of (HKIA). Ground staff of the airline will assist passengers with the new service. According to (CRY), for the 1st 2 weeks, each passenger who uses the service will be presented with a gift, as a token of gratitude for their support to the airline’s innovative initiatives.

During the trial run, the (SBD) service only applies to passengers with 1 checked baggage. After the official launch, passengers with multiple baggage items will be able to use the service.

News Item A-3: "Hong Kong International Sees Passenger and Cargo Growth in March" by (ATW) Jeremy Torr, April 18, 2016.

Hong Kong International Airport (HKIA) recorded a +4.8% rise in the number of passengers handled in March 2016 compared to March 2015, with a total of 6 million passengers. Aircraft movements were also up by +2.2% year-over-year to 35,060.

(HKIA) management described March growth as “steady”; indeed, January 2016 saw a much larger +16% growth.

Bucking a regional trend for shrinking cargo volumes, (HKIA) also saw a “mild” increase in cargo volumes in March compared to the previous year. March cargo volume rose to 368,000 tonnes, up +1.1% year-over-year. Cargo growth came principally from the India and Australasian markets, which saw up to +5% growth in export demand.

Executive Director Airport Operations C K Ng said (HKIA) was concentrating on developing smart airport technologies to enhance operational efficiency and passenger experience. One example he cited is (HKIA)’s Self Bag Drop service, which has so far been adopted by Cathay Pacific (CAT) and Hong Kong Airlines (CRY). “This new service enables passengers to cut processing time by half compared to queuing at traditional check-in counters,” said Ng.

Overall, for the 1st quarter 2016, (HKIA) handled 17.6 million passengers and saw 102,880 aircraft movements. These figures indicated +7.5% and +4% rises in each, compared to (1Q) 2015, respectively.

News Item A-4: The Malaysian Transport Ministry is to upgrade the Miri Airport in Sarawak, Malaysia, to handle the increasing numbers of international passengers. The MYR285 million/$72 million upgrade will see the construction of separate departure and arrival halls, and the provision of further covered walkways and apron extension.

Malaysian Transport Minister Liow Tiong Lai said the upgrades will enable the airport to handle up to 4 million passengers annually, up from the present 2 million design capacity. “The [upgrade] project is waiting for approval from the Finance Ministry. If it is given a green light, it will be implemented next year,” he said.

The airport sees >60 scheduled flights a day by AirAsia (ASW), Emirates (EAD), and by (MAS)wings.

Liow said the upgrade would be relatively easy, as Miri already had most of the requirements for international passenger handling. “Upgrading Miri Airport to Miri International status is not much of a problem, as it already has immigration counters and flights coming in from overseas,” he added. The upgrade plan follows the recent announcement of a new Sarawak government-backed direct schedule between Hong Kong and Kuching by Hong Kong Airlines (CRY), due to start late April.

A Sarawak government spokesperson said the new services will “help spur movement of tourists and business (C) travelers between Southern China [and] Sarawak, and vice versa.”

July 2016: Hong Kong Airlines (CRY) began daily, Hong Kong - Osaka (KIX) service.

August 2016: News Item A-1: Hong Kong Airlines (CRY) has implemented self-services for travelers such as check-in, bags ready-to-go, flight re-booking and document check at the Hong Kong International Airport. The self-services performance has been recognized by (IATA), which has awarded the "Green Certificate" in the Fast Travel Program.

News Item A-2: Hong Kong Airlines (CRY) announced that it will add frequency of its flights to Osaka to 2x-daily, commencing September 15, 2016, and that to Sapporo to daily from October 30 2016.

(CRY) currently flies to over 30 destinations in the Asia-Pacific region. With the upcoming flight service to Yonago and the additional flight service to Osaka and Sapporo, by then Hong Kong Airlines will operate a total of 60 weekly flights between Hong Kong and Japan, including 2 daily flights to Okinawa, Tokyo and Osaka respectively, 1 daily flight to Sapporo and 5x-weekly service to Kagoshima, as well as 2x-weekly flights to Miyazaki, Okayama and Yonago, respectively. Hong Kong Airlines (CRY) will then have 8 flight destinations in Japan, which represents a further upgrade of its destination network in the country.

News Item A-3: Hong Kong Airlines (CRY) and Royal Brunei Airlines (RBA), the national flag carrier of Brunei Darussalam, signed a code share agreementto provide travelers with enhanced connections in Asia.

Under the agreement, (CRY)’s “HX” code will be placed on (RBA) daily flights between Hong Kong and Bandar Seri Begawan, the capital and largest city of the Sultanate of Brunei. At the same time, (RBA) will place its “BI” code on (CRY)’s daily flights between Hong Kong and onwards to Tokyo, Japan.

News Item A-4: A330-343 (1124, B-LNU), ex-(9V-STN), Lease Corp International leased.

September 2016: News Item A-1: Due to Typhoon Meranti, the below Hong Kong Airlines (CRY) flights were cancelled:

September 14, Flight HX173, Hong Kong to Fuzhou
September 15, Flight HX174, Fuzhou to Hong Kong

Passengers were advised to check flight status on the websites of Hong Kong Airport and Hong Kong Airlines (CRY): http://www.hongkongairlines.com/en_HK/flight/status
or to register with “Flight Alerts” service (4 hours before scheduled departure time) or contact the (CRY) phone call center:
Hong Kong Airlines Call Center: Hong Kong: (852) 3916 3666 / Mainland China: 950715 / Taiwan: 00801853033.

For media enquiry, contact Corporate Communications:
Tel: (852)3151 4667/ 6461 4382 Email: corpcomm@hkairlines.com

Current info on Hong Kong Airlines:
Established in 2006, Hong Kong Airlines (CRY) is a full-service airline firmly rooted in Hong Kong with a wide destination network covering >30 major cities across the Asia Pacific region, including Gold Coast, Beijing, Shanghai, Taipei, Tokyo, Sapporo, Bangkok, Bali, and Okinawa. The current operating fleet is made up of 32 Airbus aircraft with an average age of around 3.9 years, consisting of 27 passenger aircraft and 5 freighters. (CRY) has been awarded the internationally acclaimed 4-star rating from Skytrax since 2011.

News Item A-2: Commenced on September 14, 2016, Hong Kong Airlines (HKA) became the 1st and the only carrier providing direct 2x-weekly flight service between Hong Kong and Yonago, Tottori Prefecture, Japan. The new service is operated by an all-economy (Y) class Airbus A320 aircraft.

(CRY) currently has >30 destinations covering the Asia-Pacific region. With the additional 2x-weekly service to Yonago, complemented by the 2x-daily flights to Okinawa and Tokyo, 5x-weekly service to Kagoshima, 2x-weekly flights to Miyazaki and Okayama, and 2x-daily flights to Osaka starting September 15 and daily flight to Sapporo starting October 30, (CRY) will operate a total of 60 weekly flights between Hong Kong and Japan, covering 8 destinations.

The flight schedule for Yonago route is as follows (All Times Local):
* Hong Kong to Yonago, Flight HX6650, 12:05/16:10 on Wednesday, Saturday

* Yonago to Hong Kong, Flight HX6651, 17:10/19:55 on Wednesday, Saturday.

News Item A-3: Hong Kong Airlines (CRY) appointed Ms Amy Tsang, as General Manager Alliances & Partnerships.

News Item A-4: Hong Kong Airlines (CRY) has confirmed an order for +9 more Airbus A330-300s, which it will operate to a range of destinations in Asia and beyond. “Today’s announcement underscores our plan to operate an extensive regional network in Asia. The A330’s flexibility also allows us to further deploy these aircraft to some long-haul routes in the future, and we are going to operate the all-new A350 XWB in 2017 which will open a new chapter of our international operations,” (CRY) President Zhang Kui said.

December 2016: News Item A-1: INCDT: A Hong Kong Airlines (CRY) Airbus A330-300 (B-LNP) performing flight HX690 from Hong Kong (China) to Sapporo (Japan), was in the initial climb out of Hong Kong's runway 07R when the crew (FC) declared emergency reporting an engine (Trent 772) failure. The aircraft levelled off at 5000 feet and entered a hold while the crew (FC) was working the checklists, the crew (FC) reported the right hand engine was shut down.

The A330-300 landed safely back on runway 07L about 20 minutes after departure. A replacement Airbus A330-300 (B-LNC) reached Sapporo with a delay of 4.45 hours.

News Item A-2: Hong Kong Airlines (CRY) made an inaugural daily Hong Kong - Seoul service on December 16.

News Item A-3: Hong Kong Airlines (CRY) plans to accelerate its intercontinental expansion with the scheduled delivery of its 1st Airbus A350-900 in August 2017.

In 2010, (CRY) ordered 15 A350-900s, which will be introduced starting from 2017, and 10 A330s that were delivered starting from 2012. It also placed an order for +9 more A330s in September 2016.

(CRY) expects to open new routes to Vancouver; London; New York; San Francisco; Los Angeles; Paris; Melbourne, Australia; Sydney; Milan; Chicago; and Christchurch, New Zealand, between 2017 to 2020. (CRY) opened 2 intercontinental routes (Hong Kong - Gold Coast - Keynes and Hong Kong - Auckland) earlier this year.

According to co-Chairman Zhang Kui, (CRY) currently operates international routes to >30 cities in the Asia-Pacific region, with passenger boardings of >6.6 million in 2016, accounting for a 10% share of the Hong Kong market.

(CCO) Li Dianchun told local media (CRY) can utilize 6th-freedom rights to attract more of China’s mainland passengers, to maintain a high load factor that is expected to reach 82% LF this year. 30% of the expected load factor will be transfer passengers. Meantime, (CRY) noted it would open a new lounge, covering >1,000 sq ms/10,800 sq ft, at Hong Kong Airport in the 1st quarter of 2017. The airport started to build its 3rd runway in August, for construction is to be complete in 2022. After the 3rd runway goes into operation, Hong Kong Airport would be capable of handling 100 million passengers per year.

January 2017: News Item A-1: Hong Kong flag carrier Cathay Pacific (CAT) is reportedly preparing for a business overhaul that could include job cuts, cost savings and shifting flights to its short-haul unit Cathay Dragon (DRG).

Details of a major business review and a plan to stand up to increasing competition from Chinese and Gulf airlines as well as low-cost carriers (LCC)s will be revealed January 18, according to a "Reuters" report.

(CAT) cancelled its 2nd-half profit forecast in October and said it was reviewing its business. The Oneworld (ONW) Alliance carrier saw a sharp profit decline in the 1st half of 2016 with net profit dropping to HK$353 million/$45 million for the 6 months through June 30, compared to a profit of almost +HK$2 billion for the same period a year earlier.

Passenger revenue was down -7.8% to HK$33.4 billion for the half year. “Higher competition, weaker currencies in some markets, and soft premium demand on long-haul routes” were cited as the main causes of “sustained pressure on revenue.”

With massive growth in outbound travel by Chinese travelers, Chinese mainland carriers have accelerated their international expansion pace in recent years, while the major Gulf carriers have also aggressively expanded their China - Europe routes, China - Africa routes and Kangaroo routes that have been Cathay (CAT).

Local (LCC) Hong Kong Airlines (CRY) has also expanded operations and has mapped out long-haul intercontinental ambitions.

News Item A-2: Hong Kong Airlines (CRY) will launch daily nonstop Hong Kong - Vancouver Airbus A330-200 service from June 30.

March 2017: Hong Kong Airlines (CRY) appointed George Liu as Chief Marketing Officer. He was formerly Boeing Commercial Airplanes Director Airline Global Brand & Marketing.

April 2017: Hong Kong Airlines (CRY) and Asiana Airlines (AAR) entered into code share partnership to bring more flight options to passengers traveling between Hong Kong and Seoul, the capital city of Korea.

Under the agreement, (CRY) and (AAR) place their respective marketing codes on each other's flights between Hong Kong and Seoul. The partnership allows customers of both (CRY) and (AAR) to choose from a total of 5x-daily flights when they travel between the 2 Asian key business cities.

Mr Li Dianchun Chief Commercial Officer (CCO) Hong Kong Airlines said: "We launched the daily flight service from Hong Kong to Seoul last December, which was our 1st route to Korea. From then, we have been actively exploring ways to improve schedule options on this route. We are very happy to establish code sharing partnership with Asiana Airlines (AAR), 1 of the world's best airlines. By connecting the hubs of the 2 airlines, the code share does not only benefit customers. "By connecting the hubs of the 2 airlines, the code share does not only benefit customers traveling between Hong Kong and Seoul, it also allows customers to seamlessly transfer when they travel on an itinerary to or from other destinations that includes flights operated by both carriers."

July 2017: Hong Kong Airlines (CRY) has launched its 1st route to North America. On June 30 (CRY) began a daily service to Vancouver (YVR) from Hong Kong (HKG) using its 264-seat A330-200s. The 10,266 km route is already flown 17x-weekly by Cathay Pacific Airways (CAT) and daily by Air Canada (ACN).

Hong Kong legend Jackie Chan was on the inaugural flight. Craig Richmond, President & (CEO) of Vancouver Airport decided to ‘get in shape’ to meet the martial arts master and his exploits can be seen here. Richmond said: “We are thrilled to welcome Hong Kong Airlines (CRY), an award-winning company with a great growth story. (CRY)’s new year-round service will further link Vancouver and Canada with one of the world’s most dynamic cities. This service presents more options for passengers and businesses, while spurring economic growth and trade.”

George Liu Chief Marketing Officer, Hong Kong Airlines (CRY) said: “The launch of this new route from Vancouver represents an exciting new chapter for (CRY) as we expand our services into Canada with the intention of cultivating a global audience. To commemorate our official entry into the North American market, we are thrilled to have renowned Hong Kong-born martial artist, Academy Award-winning Hollywood actor and world traveller Jackie Chan on board the inaugural flight as our Hong Kong Airlines brand ambassador. He offers an opportunity to further establish an East-meets-West, cross-cultural connection for our new customers, and complements our truly Hong Kong brand that bridge our new routes into Western gateways.”

August 2017: Hong Kong Airlines (CRY)'s 1st Airbus A350-900 completed its maiden flight in Toulouse, France. The aircraft will now enter the final phase of production, further ground checks and test flights before being prepared for delivery at the end of August. (CRY) has 15 A350 XWBs on order.

1 A350-900, AerCap (DEA) leased, on August 31.

September 2017: News Item A-1: Hong Kong Airlines (CRY), part-owned by Chinese conglomerate the (HNA) Group, plans to target business (C) travelers from small and medium sized companies as it launches new long haul routes to North America and Europe, its Vice Chairman said.

(CRY) and sister budget carrier Hong Kong Express Airways have been expanding rapidly in a challenge to Hong Kong's dominant airline, Cathay Pacific Airways (CAT), which has a strong grip on the corporate market.

Last month, (CAT) reported its worst 1st-half loss in at least 20 years after competition cut fares. "As a full service airline, our strategy is to attract business (C) travelers as well as family travelers," Hong Kong Airlines Vice Chairman Tang King Shing told Reuters. "Our theme is luxurious affordable tickets. You don't have to be a (CEO) of a big company to enjoy our business (C) class service."

Virgin Atlantic (VAA) once pursued a similar strategy competing against British Airways (BAB) and Virgin Australia (VOZ) Holdings Ltd more recently did so against Qantas Airways (QAN). Both challenger brands eventually captured a share of larger corporate accounts as they expanded their network and frequencies.

Hong Kong Airlines (CRY), which flies to nearly 40 destinations with 31 passenger airplanes, recently took delivery of its 1st A350 aircraft for long-haul routes and opened a new premium lounge at Hong Kong International Airport.

(CRY), which already flies to Auckland and Vancouver in competition with Cathay Pacific (CAT), is launching flights to Los Angeles from December and plans to expand to San Francisco, New York and London next year.

"Certainly, this will impact demand for (CAT)'s offerings on the same routes due to increased supply, especially since (CRY) will be operating a relatively newer fleet," (UOB) Kay Hian Asia Transport Research Director K Ajith said. "Cathay (CAT)'s yields on the routes will be adversely affected."

(CRY), which is not listed and does not disclose its earnings publicly, has 21 A350s on order with Airbus (EDS) and 3rd-party lessors that are expected to be delivered over the next 3 to 4 years.

"We are also looking to have other types of aircraft as well but no firm decision at this stage," Tang said.

Sister carrier HK Express, which targets the low cost carrier (LCC) market, said it would add wide body aircraft to it fleet eventually to make use of limited airport slots and allow for growth to longer-range destinations.

Despite both being part-owned by the (HNA) Group, the carriers do not coordinate their route choices or flight timings, because they target different market segments.

News Item A-2: The 1st A350 aircraft of Hong Kong Airlines (CRY) arrived at Hong Kong Airport at 3:50 pm on September 1st. The day also marked the opening of its brand new (VIP) Lounge "Club Autus". The arrival of its A350 and opening of its new lounge mark a new milestone in its global expansion and customer service improvement.

December 2017: Hong Kong Airlines (CRY) will launch 3x-weekly Hong Kong to Malé, Maldives services on January 16, 2018.

February 2018: A350-941 (187, B-LGD), ex-(F-WWAW), AerCap (DEA) leased.

April 2018: News Item A-1: "Virgin Australia to Launch New Flights to Hong Kong" by Adrian Schofield, (ATW) Daily News, April 03, 2018.

Virgin Australia (VOZ) will begin flights from Sydney to Hong Kong on July 2, which will join its existing service from Melbourne to Hong Kong. (VOZ) had previously signaled it wanted to start the Sydney flights this year as it expands its reach in the Greater China market.

(VOZ) regards Hong Kong as its gateway to mainland China, thanks to existing connections with partner Hong Kong Airlines (CRY). (VOZ) has also revealed it will be adding an interline agreement with HK Express (HKE), which like (CRY) is an affiliate of the (HNA) Group. (HNA) is a major shareholder in Virgin Australia (VOZ).

The HK Express (HKE) interline flights will be sold by (VOZ) starting later this month, and will allow passengers from Sydney and Melbourne to connect to other Asian destinations beyond Hong Kong. (VOZ) also connects with Virgin Atlantic (VAA) flights in Hong Kong.

The new Sydney to Hong Kong route will use Airbus A330-200s. "Greater China is a key pillar of our strategy and the addition of Sydney services to our already popular Melbourne flights to Hong Kong strengthens our proposition immensely," (VOZ) group executive Rob Sharp said.

News Item A-2: "USA (DOT) Approves Hong Kong Airlines, Etihad Code Share to (SFO), (LAX)" by (ATW) Katie Cantle, April 16, 2018.

The USA Department of Transportation (DOT) has approved a code share between Hong Kong Airlines (CRY) and Etihad Airways (EHD) on 2 intercontinental services from Hong Kong to San Francisco International (SFO) and Los Angeles International (LAX) airports.

Abu Dhabi-based Etihad Airways (EHD) is expected to place its EY code on the 2 services operated by Hong Kong Airlines (CRY). Both carriers are expected to enhance their flight connectivity between the Middle East, Asia and Europe through the new code share deal.

(CRY) began Airbus A350 flights to Los Angeles December 2017 and launched service to San Francisco March 25, 2018. (EHD) cut its service to San Francisco and reduced flight frequencies to Los Angeles from daily to 3x-weekly flights.

(CRY) and (EHD) began code sharing in 2014. Under the agreement, (EHD) placed its code on flights from Hong Kong to Bangkok and Okinawa, Japan. In return, (CRY) placed an HX code on (EHD)’s 3x-daily flights between Abu Dhabi and Bangkok, with 2 additional routes connecting Abu Dhabi to Madrid starting March 29, 2015 and to Hong Kong beginning June 15, 2015.

In recent years, (CRY) has committed to rapid international expansion as a part of its strategic transformation from a regional to an international carrier.

(CRY) plans to open new service to New York and London this year in addition to its San Francisco service opened last month. “Our performance on long-haul international routes will be 1 of the important indicators to evaluate whether our transformation is successful or not,” (CRY) President Wang Liya was quoted as previously saying.

(CRY) has 37 aircraft in its fleet, comprising 20 A330 family aircraft, 11 A320 passenger aircraft, 2 A320 freighters and 4 A350-900s. (CRY) plans to expand its fleet to 50 aircraft in 2019 and is scheduled to put all its ordered (21) A350s in place by 2020 to facilitate its international expansion.

In 2017, (CRY) transported >7 million passengers, up +9% over 2016, and boosted its share of the Hong Kong market to 10% from 9.07% in 2016.

News Item A-3: Hong Kong Airlines (CRY) resumes 3x-weekly Hong Kong to Moscow Vnukovo Airbus A330-300 service from May 18 to October 27.

August 2018: Hong Kong Airlines (CRY) and Fiji Airways (APC) have signed a code share agreement to give passengers increased connectivity and connection between major destinations in the South Pacific and Asia.

Under the agreement, (APC) flights between Hong Kong, China and Nadi, Fiji, as well as Nadi and Auckland, New Zealand will operate with a (CRY) flight number. Reversely, (CRY) flights between Hong Kong and Bangkok, Thailand and Tokyo, Japan and Osaka, Japan will operate under (APC) flight numbers.

“The commencement of our partnership with (APC) is good news for passengers of both airlines. Our passengers now have a new choice to enjoy the white sandy beaches and aesthetically pleasing islands of Fiji under an all-year-round sunny weather,” said Li Dianchun, Chief Commercial Officer (CCO) (CRY). “Meanwhile, we are excited to welcome more new friends from Fiji onboard (CRY)’s flight to explore the bustling contemporary city of Hong Kong which embodies the unique ‘east-meets-west’ culture.”

“We’re delighted to have an excellent partner, Hong Kong Airlines (CRY), to help expand our footprint in NE Asia. This is a key part of our growth and presence in the region, and the 3 destinations are welcome additions to our network,” said Andre Viljoen, Managing Director & (CEO) of (APC). “The arrangement will allow through check-in of customers and their luggage all the way to their final destinations, offering convenient transit options in Kong Kong and Nadi. We look forward to welcoming more Asian travelers to our home, Fiji, one of the world’s most sought after tourist destinations.”

Flight tickets between Hong Kong and Nadi, as well as Nadi and Auckland, can be purchased now through both airlines. Tickets for flights between Hong Kong and Bangkok, or Tokyo and Osaka, will start later this month.

November 2018: A350-941 (256, B-LGH), (ALAFCO) leased.

January 2019: "Hong Kong Airlines Threatens to Sue Over Bankruptcy Rumors" by Chen Chuanren (Chuanren@purplelightvisuals.com), January 8, 2019.

Hong Kong Airlines (CRY) is threatening court action against those who create “untrue and groundless” rumors that (CRY) is going into liquidation and ceasing operations. “We deplore the untrue and groundless speculations about (CRY) ceasing operation and applying for liquidation. We reserve the right to take legal action against those who deliberately create these rumors,” (CRY) said on January 5.
(CRY) stressed that operations are normal.

Rumors began when 5 directors resigned over a 6-month period since July, and Vice Chairman Tang King-Shing left the board to become (CRY)’s consultant in December 2018. (CRY) said on December 21, 2018, saying the change in directors has no impact on its operations and business.

On January 3, Blue Cross Insurance withdrew coverage for passengers in the event (CRY) folds, spurring further speculations of (CRY)’s financial health. The new policy took effect on January 7. Affected passengers were initially able to claim up to HKD2,000/$255 if (CRY) ceases operations.

Confusion also arose when owner the (HNA) Group sued Hong Kong Airlines Consultation Service on December 30, 2018 for HK$854 million in unpaid debt. Former (CRY) Director Zhong Guosong owns Hong Kong Airlines (CRY) Consultation Service.

(CRY) soon explained the lawsuit was not related to the airline and has no links to (CRY) Consultation Service.

The (HNA) Group is currently selling numerous properties around the globe to pay off its mounting debts. Its aviation portfolio was not spared as well, selling stakes in Urumqi Airlines (URQ) to the local provincial government as well as shares in South Africa’s Comair (CML) and has disposed a total of about CNY300 billion/$43.8 billion worth of assets in 2018.


Click below for photos:
CRY-A320-200 - 2012-01
CRY-A330-300 - 2014-05
CRY-A330-300 - 2016-01.jpg
CRY-A350 - 1st 2017-09.jpg

March 2019:

0 737-332F (CFM56-3B1) (2510-25998, /93 B-LHN), YANGTZE RIVER EXPRESS (YTH) LEASED 2010-04. RETURNED. FREIGHTER.

0 737-39KSF (CFM56-3B1) (2559-27274, /93 B-LHN), RETURNED. FREIGHTER.

0 737-8AL (CFM56-7B-26) (3299-37953, /10 B-KBU), (HNA) LEASED 2010-06. RETURNED. 8C, 156Y.

0 737-8FH (CFM56-7B) (2501-35105, B-KBP, 2008-02), (RBS) AEROSPACE/(HNA) LEASED 2008-02. RETURNED. 8C, 156Y.

0 737-808 (CFM56-7B) (B-KBF, 2006-06; 2046-34707, B-KBH, 2006-09), 2121-34709, /06 B-KBI 2006-12; 2144-34710, B-KBJ, 2007-01; 2239-34967, B-KXF, 2007-04; 2265-34968, B-KXG, 2007-06; 2380-35076, B-KBM, 2007-09; 2400-34971, B-KXH, 2007-10; 2611-35276, B-KBR, 2008-05), WITH WINGLETS. SOME (ICE)/(HNA) LEASED. 34707; IN NEW LIVERY "HONG KONG AIR" 2006-12 - SEE PHOTO. ALL RETURNED. 8C, 156Y.

0 737-84P (CFM56-7B) (2155-35072, /06 B-KBK, 2007-01; 2217-35074, B-KBL, 2007-03; 3214-37422, B-KBT, 2010-04), (SIL) LEASED, (HNA) WET-LEASED. ALL RETURNED. 8C, 156Y.

0 737-84P (CFM56-7B) (2570-35274, B-KBQ, 2008-04; 2772-35285, B-KBS, 2008-12), (HNA)/(ILF) LEASED. ALL RETURNED. 8C, 156Y.

15 ORDERS 747-8I:

6 ORDERS 777-200F (GE90-110B1), FREIGHTER.

32 ORDERS 787 DREAMLINER INCLUDING 2 787-8 (VIP) AIRPLANES & 30 787-9, 250 - 290 PAX:

1 A319 AIRBUS CORPORATE JET (ACJ) (V2500), 2009-09.

7 A320-200.

3 A320-214 (CFM56-5B4/3) (4970, /12 B-LPB - - SEE PHOTO - - "CRY-A320 1ST - 2012-01;" 5626, B-9949), EX-(F-WWID) 2012-01. 5626; LEASED TO WEST AIR (CHO) 2013-06. 8C, 150Y.

1 A320-214 (CFM56-5B4/3) (6570, B-1692), EX-(B-OOOV), LEASED TO TIANJIN AIRLINES (GCR). 8C, 150Y.

1 A320-214 (CFM56-5B4/3) (7077, B-LPQ). 8C, 150Y.

1 A330-202 (1321, VP-CBE), EX-(F-WWKM) 2012-07.

6 A330-223 (PW4170A) (1031, /10 B-LNC; 1034, /10 B-LNI; 1039, /10 B-LNE; 1042, /10 B-LND; 1054, /10 B-LNG; 1059, /10 B-LNF), 1034; LEASED TO (HNA) 2010-08. 24C, 259Y.

3 A330-243 (TRENT 772B-60) (1277, /12, B-LNJ; 1286, /12 B-LNK; 1322, /12 B-LNL), 2012-02, EX-(F-WWYJ & F-WWYH), 1286; LEASED TO (HNA) 2012-11. 34F, 82C.

5 A330-243F (TRENT 772B-60) (1051, /10 B-LNZ; 1062, /10 B-LNY; 1115, /11 B-LNX), (CSL) LEASED 2010-09, EX-(F-WWKD; & F-WWKU). FREIGHTER.

2 A330-343 (TRENT 772) (B-LNC; B-LNP).

1 A330-343E (1369, B-LNN), RETURNED FROM (HNA) LEASE 2016-01.


1 A330-343X (1325, B-5903), EX-(F-WWTL), LEASED TO (HNA) 2012-07.

2 +5 ORDERS A330-300.

9 ORDERS A330-300:

3 +18 ORDERS A350-941 XWB (2017-09; 187, B-LGD, 2018-03; 256, B-LGH, 2018-11), EX-(F-WWAW), (DEA) LEASED, (ALAFCO) LEASED.


0 BOMBARDIER CRJ-200LR (CF34-3B1) (7565, /01 B-KBJ; 7690, /02 B-KBA), (SHG) LEASED. ALL RETURNED. 50Y.

0 BOMBARDIER CRJ-700 (CF34-8C1) (10048, B-KBC; 10052, /02 B-KBB). 2 RETURNED. 68Y.


Click below for photos:
CRY-7-Li Dianchun - 2016-01.jpg
CRY-9-Amy Tsang - 2016-09.jpg







Mr Lui is responsible for improving company performance, enhancing service delivery and promoting the cooperation with partner airlines.
“I will dedicate myself to integrating the company resources to achieve the best synergy effects,” said Mr David Lui. “Service enhancement is also one of my primary focuses as to build a solid foundation for realizing the targeted growth of the company.” Mr Lui is an aviation veteran with more than >22 years of experience. Prior to joining Macau Express as the Chief Operation Officer (COO), he had held a number of key positions with Dragonair (DRG) and Cathay Pacific (CAT) (where he worked for 14 years since 1985). Mr Lui then joined (DRG) as General Manager Engineering in 1998 and set up the Engineering Division for the company. Under his leadership, the Engineering team had designed and built a unique airplane technical management model, which was well recognized by the International Federation of Airworthiness (IFA) and he was presented the "Frank Whittle Safety Award" for Year 2005. During his time in (DRG), Mr Lui was also involved in Corporate & Fleet Planning, Information Management, On-Time-Performance, Service Delivery, Human Resources (HR) Policy Committee, and task forces that formulate and implemented major strategic company decisions.

Mr Lui holds a Master’s degree in Business Administration (MBA) from the University of Michigan Ann Arbor, USA, and is a Fellow of the Royal Aeronautical Society, UK. He is also an honorary adviser to the Hong Kong Aviation Industry Association.




George was previously Director Airline Global Brand & Marketing for Boeing Commercial Airplanes (BCA).










Amy will be responsible for Alliances management and accountable for growing business with existing airline partners, and expanding cooperation with new partners to support the Hong Kong Airline’s global network development.

She was appointed following an over >20-year career in aviation, most recently in the section of Alliance & Partnerships, taking care of alliance and partnership development of the Cathay Pacific (CAT) Group with global partners. Prior to this, she held a number of positions in the Revenue Management Department of Cathay Pacific Airways (CAT), including Route Management, Pricing & Revenue Strategy Planning. Amy holds a Bachelor Degree in Business Administration from The University of South Australia.

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