Hong Kong Airlines dares to take on Cathay Pacific

Hong Kong Air plans to acquire some 100 aircraft for its fight against Cathay Pacific.

Upstart 10-year old Hong Kong Airlines Ltd with its current fleet of 15 aircraft intends to dogfight with Cathay Pacific Airways Ltd., Hong Kong’s flag carrier and its largest airline with 130 aircraft.

Hong Kong Air expects to hold a $300 million initial public offering (IPO) in the third quarter backed by China’s HNA Group to add planes is a major bid to challenge Cathay Pacific's dominance. Hong Kong Air plans to acquire some 100 aircraft for its fight against Cathay Pacific.

The company hopes to add more than a plane a month through 2015 as it builds up its network in its attempt to lure travelers from Cathay Pacific. Hong Kong Air’s plans include the start of all-business-class flights to London in March and the addition of Airbus SAS A380 superjumbos.

The airline flies to Moscow and is also looking to add services to Frankfurt and Brussels. Hong Kong Air has also won rights to fly to Taiwan.

The carrier will be listed through a holding company that will own 100 percent of the airline and of affiliate Hong Kong Express, said Kenneth Thong, head of corporate governance and international affairs. Sister airline Hong Kong Express is being converted into a budget airline, while Hong Kong Air will continue offering full-service flights.

HNA Group, Hong Kong Air’s parent company, also controls Hainan Airlines Co., China’s fourth-biggest carrier by market value.

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Tags: Hong Kong Airlines Ltd , Cathay Pacific Airways Ltd, HNA Group,