Hong Kong Airlines Could Cancel A380 Order – Report
Airbus A380
Carrier Also Likely to Replace Some Boeing 787 Orders in Favor of Airbus Jets
Hong Kong Airlines (HX) is considering cancelling its order for 10 Airbus A380 Superjumbo airliners according to AFP due to its continued protests of the European Union Emissions Trading Scheme tax (EU ETS).
“There are no firm decisions at this point. It will depend on how the business and the external environment evolves in the future,” a spokesperson told AFP.
HX also plans to replace five Boeing 787-800 and two B737-300 cargo jets with Airbus A330 and A320 planes this year, looking to increase efficiency by operating just one brand of aircraft.
Hong Kong Airlines has been hit hard by the Euro debt crisis, and also announced the suspension of business-class-only flights between London Gatwick and Hong Kong starting in September after about six months of operation.
Even though the carrier has pending orders with Boeing, the spokesperson told AFP that HX would eventually have an “all Airbus” fleet.
Category: Airnation
So lets get this straight. Hong Kong airlines is canceling their Airbus order as a sign of protest against the EU emissions program but will instead buy a large order of Airbus planes. Really??? Stop the corporate BS spin. Hong Kong Airlines obviously can’t afford or over estimated their need for such a large plane and instead of just admitting that they’re bad business people, they want to pass the buck. And the fact that Airnation.net continually just regurgitates corporate IR press releases instead of actually reporting aviation news only propagates this kind of dribble journalism.
Where do you people come from? And exactly what ‘corporate BS spin’ are you referring to exactly?
I’m glad there’s a site like this that brings in the news so I can keep up. And I know the difference between PR and news…and I got news for you (pun intended)…this ain’t a press release so get your facts straight for starters…
Probably a frustrated pilot Max. *rollseyes*
This is exactly why I come here…Ken and his staff don’t sensationalize everything like some other sites do and I appreciate that.
Not sure either what Robert above is referring to.
The previous two posters prove my point. For 25 years I worked in the Corporate PR departments for American Airlines and then Virgin Atlantic so I would have to say “Max” that I probably know a little bit more than you do about corporate spin and making it look like a news article. But then again you’re the expert because you know the “difference”…..Yea right. My specialty was writing pr releases that lazy journalists would quite often, copy verbatim and voila, my release would show up in the press or now-days online to be read by lazy, un-informed readers. Case in point? My comment was about the absurdity of Hong Kong Airlines reneging on buying 380′s because of the EU emissions standards and then turning around and buying Airbus planes anyway. Its an oxymoron of corporate actions. Airbus is still going to make a lot of money from HX. But instead of responding to the meat of my posting, you felt the need to protect the dignity and reputation of Airnation and the writer. Trust me, they’re big boys and they can stand up for themselves. Oh and by the way JamesMX, yes I am a pilot but not one bit frustrated.. except for posters who don’t have a clue about the way the corporate aviation world and the press really work. Maybe read the article slower, then my original comment and you’ll see what I’m “referring to” (PS. its bad form to end a sentence with a preposition).
So…absurd that HK is ‘reneging on buying 380′s because of the EU emissions standards and then turning around and buying Airbus planes anyway’?
Absurd that they’re DOING this or absurd that Airnation.net REPORTED it?
If it’s the former I probably agree with you. What I don’t get is the slam on Airnation.net. They’re merely REPORTING it. Nothing more or less.
And I know they can stand up for themselves. You can’t build a site like this and be successful if you weren’t. And Kenneth Holland has a track record as a successful publisher. That I do know.
Robert, calm down you are way off the mark.
Instead of thinking you can’t be wrong, let’s actually look at the facts:
HKA will be putting into service, Airbuses that they already have on order, due to be delivered shortly (would be stupid to cancel them when they are on the production line!)
The 380′s are NOT due til 2015, so if they were to cancel them (for whatever reason) then it ain’t too hard to do when they are years away.
And to look at the facts again, the Chinese government is the one that is actually putting pressure on Chinese carriers not to order Airbus aircraft and they have actually stopped various orders. And wouldn’t you know it, HKA is owned by the Chinese airline Hainan…so guess where the decisions are been made?
And as for you been so superior at PR releases, you obviously can’t read them. Your words “the absurdity of Hong Kong Airlines reneging on buying 380′s”…YET, the article clearly states “Hong Kong Airlines (HX) is considering…”
Reneging and considering are 2 different things. So before you let out the frustrated pilot in you and try to be a hero over others (you must be a dream to fly with)…calm down and get your facts straight.
Interesting reply Sam Black. The point I made and if you had actually read the original posting was that HX was yes “considering… terminating their A380 order… due to its continued protests of the European Union Emissions Trading Scheme tax” Their words not mine. So if they’re protesting the tax and want to hurt the EU, then logically they (or the Chinese Govt.) would sell their other positions in the manufacturing line for the Airbus planes they have on order. Otherwise its an empty threat that doesn’t really hurt the EU at all. The truth is probably that HX is having major financial problems. Look at their sudden cancellation of the Shanghai-Gatwick all Business Class flights. The A380 “tax” issue is a smoke screen for what might be the the final stages of this airline.
And JamesMX, please read an article that was just posted in todays Airnation: http://airnation.net/2012/08/16/ready-to-start-your-own-airline/. If you can with a straight face tell me that this article is not a press-release and is an original story written by Lee Ferrara, then you should start your own publishing outlet. You would be a PR hacks dream come true. Real journalists do not write this way.
Robert,
I live in Hong Kong and been following this very closely, as all stories aviation in this part of the world.
Firstly, for an airline to cancel an order with the aircraft on the production line costs them insane amounts, even if to sell their slots. They have aircraft ordered which are due over the remaining months of THIS year, so practically the aircraft are probably already in HKA colors on the production line.
As I said previously, if you weren’t such a know-it-all, you would realize how this part of the world works. It doesn’t matter what HKA wants to do, to keep the party happy in Beijing they have to be seen to be following the party line (especially since they are owned by Hainan). At this stage it has been nothing more than a threat, what they are hoping for, who knows! They could be simply after a further discount.
They are not the first airline to do this in HK or China…after pressure from the govt, some have cancelled orders or put them on hold, with China Eastern even going to 777′s instead. The Chinese govt, have actually directed ALL their airlines, NOT to do any further deals with Airbus until the emissions scheme is cancelled.
So take your head out of the sand and think BUSINESS…to cancel aircraft due this year, that are currently on the production line, would cost millions, it’s actually harder to sell an aircraft on the line as configurations, engines, options are already chosen (another airline can’t change them at this late stage). While selling or cancelling aircraft booked on the line in a few years time is easy, as the purchasing airline has time to change the options, etc to their own config.
So if we take your sensationalist view, then the place is about to go bust…funny, as they are prepared to spend $10mil per aircraft on their VIP config 330′s (used for London) to be changed back to normal configs…pretty stupid decision if they are as you say ‘having financial problems’
As for the London flights…it’s HK-LGW, not Shanghai (again don’t let FACTS get in your way), the writing has been on the wall for months (light loads), it wasn’t a sudden decision, many could tell you that.