Route Competition in Hong Kong's Aviation Industry

Open sky policies have been implemented for decades, giving birth to many airline newcomers from diverse backgrounds lifting off into liberalized skies. EasyJet, Ryanair, Wizz Air, and Southwest Airlines are examples of independent budget airlines, branding the outcome of aviation liberalization and contributing to interoute competition through their networks. However, Hong Kong International Airport, which aspires to be a better and greater air hub, is crowded with local carriers, and the airport flight timetables rarely show the presence of non-local budget airlines or competing routes. This Article examines the importance of interoute competition and the role that budget airlines play in it. Upon citing the data and traffic schedule to and from HKIA, this Article looks to the HK-Japan and HK-Australia routes as examples of the lack of interoute competition in HK’s internal aviation market. Finally, this Article discusses the reasons leading to such a problem and recommends ways for policymakers to address it.