Low fare airlines have been developing rapidly around the world. According to the data from Centre for Asia Pacific Aviation (CAPA), the market share of low cost airlines in the Asia-Pacific region accounts for about 20%, but for an aviation hub like Hong Kong accounts for only 5%. It is attractive for many low fare airlines to enter the aviation industry in Hong Kong. Shun Tak Holdings Limited, China Eastern Airlines and Qantas Airways joint venture Jetstar Hong Kong is no exception.
Jetstar Hong Kong Chief Executive Officer Edward Lau said in an interview that the per capita income in the Asia Pacific region is rising. Hong Kong is an aviation hub in the Asia-Pacific region, there are half of the world population in the places within five hours flight. There is enormous potential for the development of low fare airlines in Hong Kong.
There are comments that the Hong Kong International Airport runway has been saturated, but Lau noted that the company can use the pick-up/drop-off at non-peak hours to avoid increasing the airport load. He believed that the low fare airline’s target customers are the one, whose final destination is Hong Kong, but not the passengers who come to Hong Kong for transfer flight. Lau also stressed that the low cost airlines would enhance the economy of Hong Kong, the company estimated that after commencing operation, there will be 5 million passengers per annum. It will create more than 1,000 job opportunities and expects to contribute over HK$8 billion to the tourism industry per annum, accounting for 0.5% of GDP.