Hong Kong Express budget flights begin October

Some fares 30% lower than lowest.

Hong Kong Express Airways, Ltd Intends to tap surging demand for cheap fares in Asia with the launch of its budget flights. It will be the first budget carrier based out of Hong Kong since 2008.

Hong Kong Express’ budget services will fly from Hong Kong to Kunming and Chongqing in China, and to Kota Kinabalu in Malaysia. This will be in addition to existing flights to Guilin, Taichung and Sanya.

Deputy Chief Executive Officer Designate Andrew Cowen said some of their lowest fares will be 30% below the existing lowest fares. He said Hong Kong Express will operate Airbus 320 planes to vacation destinations two to three hours away from Hong Kong.

Budget airlines account for only 5% to 6% of Hong Kong's total passenger traffic, the second lowest in Asia after Taiwan and much lower than the 21% penetration rate in Asia's total passenger traffic.

Executive Chairman Yang Jianhong said Hong Kong Express is confident it will be profitable within two years.

"As an existing carrier, we already have the necessary slots and air rights in place. The slots for takeoffs and landings during peak hours at Hong Kong airport are mostly occupied, making it difficult for a new airline to operate efficiently here.”