HK Express begins year 3 as LCC; a greater threat to Cathay than Jetstar Hong Kong would have been

Jetstar Hong Kong flies after all: although Hong Kong rejected the application of the proposed LCC in Jun-2015, much of Jetstar Hong Kong's strategy and rationale has been realised by HK Express, which is now in its third year as a LCC. HK Express is arguably having a larger impact on travel and market stimulation - and competition to Cathay Pacific - than Jetstar Hong Kong would have. HK Express launched earlier, securing a sizeable slot pool, and its positive market reception is pressuring sister full service carrier Hong Kong Airlines to be more visible and competitive.

HK Express' successful transformation and growth is also giving confidence to its HNA Group owners to deepen its experimentation with LCCs; Chongqing-based West Air has taken up the LCC platform and others will follow - including on long haul flights. A strengthening HNA Group, across full service and low cost spectrums, will pressure Cathay in ways Jetstar Hong Kong would not have been able.