The Easter break is fast approaching and Hong Kongers are likely to be paying much more than Singaporeans to fly to some of our region’s most popular holiday destinations, based on a recent analysis of airfares during Chinese New Year conducted by Jetstar Hong Kong.*

Jetstar Hong Kong conducted a fare comparison on several Hong Kong and Singapore routes during Chinese New Year.

Significant fares differences were found in the ‘dollar per kilometre’ fare costs, particularly to the popular destinations of Bangkok, Siem Reap, Yangon, Taipei and Hangzhou.

Jetstar Hong Kong CEO Edward Lau said the lack of competition in Hong Kong amongst full service and home based low cost carriers was contributing to higher fares when compared to other aviation hubs in the region like Singapore.

“Over Chinese New Year, Hong Kongers paid significantly more than Singaporeans to travel to some popular short-break destinations,” he said.

“Destinations like Bangkok, Yangon and Siem Reap are basically the same distance from Hong Kong as they are from Singapore – yet we pay more.

“With Easter upon us, it looks like we will again be faced with the proposition of paying more for our flights.”

The analysis also showed significantly lower fares being offered by low cost carriers on routes operated by a mix of a local full service carriers and foreign low cost carriers.

For example on the Hong Kong to Kuala Lumpur route, one LCC was offering average fares of over 50% lower.

“Hong Kong people will continue to pay high prices for air travel until there is a more healthy mix of low cost and full service carriers based in Hong Kong,” Mr Lau said.

“Hong Kongers will only have access to affordable air travel when we have a strong locally based LCC serving the needs of Hong Kong travellers.

“Foreign based LCCs aren’t driven by the needs and demands of our local market like a home based carrier is.

“Jetstar Hong Kong, as a home-grown LCC, will connect Hong Kong travellers to destinations they want to visit and end the era of exorbitant airfares in and out of Hong Kong,” Mr Lau said.

Mr Ensan Yuen Managing Director of EGL Tours, one of Hong Kong’s leading Travel Agencies, said, “More affordable airfares are likely to prompt more people to fly, especially Hong Kong people who have a big appetite for travel.

“Low air fares will surely help Hong Kong’s tourism industry to flourish,” Mr Ensan said.

Jetstar Hong Kong is currently awaiting regulatory approval. The company is progressing through the application process required to obtain an Air Operators Certificate (AOC) and Air Transport License Application (ATLA), to operate as a home-grown Hong Kong airline.

Jetstar Hong Kong expects to contribute up to HK$8 billion to the Hong Kong economy per annum when it is fully operational. The airline is expected to create more than 1,000 employment opportunities, including 600 direct local jobs, by the time it grows to 18 aircraft.

Notes to editors

* Background on the fare comparison research:

• The fare comparison was based a selection of popular short-haul destinations from both Hong Kong and Singapore.
• The selection included flights from Hong Kong and Singapore to the following airports: Kuala Lumpur, Penang, Phuket, Bangkok, Don Muang, Siem Reap, Yangon, Hangzhou, Ho Chi Minh City, Beijing, Luzon, Taipei, Cebu, Manila, Haikou, Fukuoka and Hanoi.
• Flights from 29 January to 3 February 2014 were analysed.
• Full Service one-way fares were calculated as half of the return fare. All Low Cost Carrier fares are direct one-way fares. These fares were then used to calculate average fares on the sector.
• Average fare is calculated by adding the average fare offered by an each airline, on each sector, during the travel period together and dividing by the number of airlines. This calculation was done separately for LCCs and FSCs.
• The booking period encompasses the duration which the fare was available for sale online, which may differ between airlines.
• Data is from a third party online screen scraping platform ‘InFare’. Fares are all inclusive excluding ancillary revenue.
• ‘Dollar per kilometre’ is calculated as the average fare from each destination (combining FSC and LCC) divided by the kilometre length of the sector.
• Singapore airfares have been converted to HKD. All fares are base fare + tax.
• Bangkok fare comparisons were taken from both the primary and secondary airports.

**Comparison of Hong Kong to Kuala Lumpur at $4,320 with a FSC and $1,893 with an LCC (Air Asia). Flights were from 29 January – 3 February. The booking period encompasses the duration which the fare was available for sale online, which may differ between airlines.