Hong Kong-London: Hong Kong Airlines entering largest Asia-Europe market, and a potential JV

Hong Kong to London is the largest market between Asia and Europe for total passengers and premium passengers. It is a logical destination for HNA's Hong Kong Airlines, which is embarking on long haul expansion and in Aug-2017 receives its first A350.

The Hong Kong-London market has nearly returned to its 2007 size, when Oasis Hong Kong briefly served the cities. Unlike Oasis, Hong Kong Airlines is a full service and network airline; Oasis only served London and Vancouver. Hong Kong Airlines will have a normal economy and business offering, unlike its all premium A330 Hong Kong-London Gatwick service in 2012.

In the last five years since its all premium folly Hong Kong Airlines has grown significantly and matured, although it still lacks a strong home market perception. Hong Kong Airlines can be expected to form a JV on the route, although it is unclear whether it will be able to command a yield premium.