Hong Kong-Philippines: Hong Kong Airlines adds to 6th freedom pressure

Hong Kong Airlines will launch a daily Hong Kong-Manila A320 service from Jun-2018, which will be its first service to the Philippines. This may seem to have limited implications on its own, but is part of an effort by Hong Kong Airlines to sustain its growing North American network: the Philippines is a large volume albeit low-yielding connecting source for Northeast Asia-North America flights.

Cathay Pacific and Cebu Pacific have the largest seat capacity in the Hong Kong-Manila market; Air China, ANA, China Eastern and Xiamen Airlines have entered the Philippines market for local traffic and to feed North American flights; EVA Air has expanded significantly.

Hong Kong Airlines' entry highlights developments in the Philippines-North America market. Philippine Airlines is undertaking a number of aircraft, product and network changes to capture nonstop traffic, but substantial sixth-freedom opportunity remains.