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Cathay Pacific layoffs | Dragonair redistribution of aviation rights in the Greater Bay Area? Scholar: 5 planes are enough for 5 lines

2020-10-22T11:58:03.045Z

Cathay Pacific Airways announced its restructuring plan yesterday (21st), cutting 8,500 jobs worldwide, and decided to suspend Cathay Dragon Airways with effect from "Slaying the Dragon". On the other side, Huang Chubiao, a wealthy mainland businessman known as "Shenzhen Li Ka-shing", is preparing to open a Greater Bay Area airline in Hong Kong. He revealed to the media that the initial plan is to operate with 5 aircraft, and he expects the first to second quarters of next year as soon as possible. set sail. After Dragonair closed its business, although Cathay Pacific intends to "inherit" its route, the Transport and Housing Bureau stated that the relevant air traffic rights will be first taken back by the Transport and Housing Bureau and cannot be transferred by itself, and then allocated according to the mechanism. In other words, the Greater Bay Area Airlines, which is preparing to enter the airport, has the opportunity to take advantage at any time. Some scholars have analyzed that although there were only 5 aircrafts in the Greater Bay Area in the early days, it was already enough to operate 5 routes. It is believed that if the government successfully obtains a license, the government may promote competition in the aviation industry. There are advantages.



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Written by: Huang Weilun

2020-10-22 19:42

Last update date: 2020-10-22 19:43

Cathay Pacific Airways announced its restructuring plan yesterday (21st), cutting 8,500 jobs worldwide, and decided to suspend Cathay Dragon Airways with effect from "Slaying the Dragon".

On the other side, Huang Chubiao, a wealthy mainland businessman known as "Shenzhen Li Ka-shing", is preparing to open a Greater Bay Area airline in Hong Kong. He revealed to the media that the initial plan is to operate with 5 aircraft, and he expects the first to second quarters of next year as soon as possible. set sail.

After Dragonair closed its business, although Cathay Pacific intends to "inherit" its route, the Transport and Housing Bureau stated that the relevant air traffic rights will be first taken back by the Transport and Housing Bureau and cannot be transferred by itself, and then allocated according to the mechanism.

In other words, the Greater Bay Area Airlines, which is preparing to enter the airport, has the opportunity to take advantage at any time.

Some scholars have analyzed that although there were only 5 aircrafts in the Greater Bay Area in the early days, it was already enough to operate 5 routes. It is believed that if the government successfully obtains a license, the government may promote competition in the aviation industry. There are advantages.

The Greater Bay Area Airlines was established by Huang Chubiao, the chairman of Shenzhen Donghai Airlines. Recently, the airline has published recruitment advertisements with a lot of staff.

Huang Chubiao said in an enquiry by Ming Pao that at the beginning of the flight of the Greater Bay Area, the fleet is expected to have 5 aircraft, and the number of aircraft in the fleet will increase to 30 by 2025.

He also said that Greater Bay Area Airlines hopes to set sail in the first to second quarters of next year at the earliest, so it is currently recruiting staff.

According to a reply from the Civil Aviation Department in August this year, an application for an air operator permit from a Greater Bay Area airline was received in July.

According to the regulations, any aircraft registered in Hong Kong cannot be used for public transportation unless the airline has obtained a permit.

Huang Chubiao is preparing for the Greater Bay Area Aviation (Photos)

New airlines need to obtain permits and licenses for admission

Airlines registered in Hong Kong need to obtain a license issued by the Air Transport Licensing Bureau in addition to the operating permit of the Civil Aviation Department.

The Air Transport Licensing Bureau is responsible for licensing local airlines operating scheduled air services between Hong Kong and around the world.

According to the bureau’s application procedures guidelines, when submitting an application, applicants must cover a detailed business plan within the validity period of the license, including forecasts of flight hours, traffic volume, passenger load factor and profitability within the first 24 months, and provide financial Status reports and forecasts, etc.

If the Licensing Authority considers it appropriate, it can first grant a temporary license.

The guidelines also mention that individuals or groups with a stake can raise objections or appeals to applications and request public or private inquiries.

Looking through the information, when Jetstar Hong Kong applied for a license, it was opposed by the then Cathay Pacific, Dragonair, Hong Kong Airlines and Hong Kong Express. A public inquiry was launched in January 2015. Finally, in June, the Licensing Authority decided, Jetstar Hong Kong does not use Hong Kong as its main place of business and rejects its application.

The guidelines mentioned that if the applicant has provided all the information to the satisfaction of the Licensing Authority, and if there is no objection, the application will take about 16 to 20 weeks.

Procedures for applying for an Air Transport Licensing Authority (Air Transport Licensing Authority documents)

In addition, the flight slots at Hong Kong Airport are allocated in accordance with the "World Slot Guidelines" issued by the International Air Transport Association (IATA). According to its definition, Hong Kong Airport is the third busiest, that is, flights must be given slots. It can be raised and lowered.

As for the time application, the Hong Kong Airport Flight Coordination Office under the Civil Aviation Department is responsible.

As IATA’s standards stipulate that there is a “right of inheritance” at any time, as long as the airline has already used the time and the utilization rate reaches 80% or more, it can continue to be used in the next quarter. Therefore, the ICAO document also mentions that the standard is not conducive to New airline (not being accommodated at particularly congested airports).

However, when an airline no longer uses the original time, it will be immediately taken back by the relevant department and redistributed.

It is now a good time for new airlines to apply for flight slots after Dragonair's suspension of operations.

Luo Xiangguo said that even if there are only 5 aircraft, it is enough to operate 5 routes.

(Information Picture/Photo by Lu Yiming)

New airlines have introduced competitive effects to compete for routes or have advantages

Luo Xiangguo, senior consultant of the Aviation Policy Research Center of the Chinese University of China, said that when airlines apply for licenses, they usually apply for routes simultaneously. He believes that at the beginning of the Greater Bay Area aviation fleet, even if there were only 5 aircraft, it was enough to operate 5 routes.

He said that the operation of Ganquan Airlines was once jokingly called "there is nothing in the sky", that is, after the passenger plane took off, the airline was on the ground and there were no other planes.

He also estimated that the establishment of the new airline will take about a year to two years, which involves whether the documents submitted are complete, "you will go back and forth several times if you don’t," and the inquiry process is also involved.

After Jetstar Hong Kong tried to promote the license, the license application was rejected.

As for whether the Greater Bay Area Airlines can take away the routes originally operated by Dragonair, Luo said that the current Hong Kong aviation industry is dominated by Cathay Pacific, and the situation is not healthy.

If the government grants a new license, it is hoped that the newly admitted airlines can successfully operate and promote competition. Therefore, it is believed that the Greater Bay Area Airlines will have certain advantages when applying for routes.

He also pointed out that not all of Dragonair's more than 40 routes are profitable, but direct flights to Beijing and other first-tier cities are believed to have greater competition.

In addition, the airport's three-run is expected to be fully operational in 2024, and there will be more time for lifting and lowering, which will also help airlines expand.

Cathay Pacific layoffs | From the proud of the sky to the abandonment of Dragonair flight attendant's long hair, it is better than the years of being a pilot

Cathay Pacific Layoffs | New Air Attendant Contract Exposures Some Employees Need to Reduce Labor Adjustments or Deduct Basic Salary 

Cathay Pacific layoffs | 35 years of Dragon Dragon entered history, former union chairman Shi Anna: as if Hong Kong lost its local flavor

Cathay Pacific layoffs | Hidden worries about inheriting the Dragonair route?

Transport and Housing Bureau: Dragonair's shipping rights must be returned to the government

Cathay Pacific layoffs | Reorganization leads to route integration, fear of loss of ups and downs, good time for early flights and late flights?

Cathay Pacific lays off Cathay Pacific Luo Xiangguo

Source: hk1

All news articles on 2020-10-22

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