Hey guys,
SIN and HKG used to be known as the go-to transit airports when it came to Asian Destinations from afar like Europe/USA/Africa. Understandably the ME3, LCCs and Chinese Airlines have affected the dynamics of the airlines operating out of the hubs, like SQ (mainline keeps on showing deteriorating profits) and CX (which reported another loss just today). As per my understanding, it seems that the ME3 are hurting SQ more for Europe bound traffic and the Chinese Airlines for CX are hurting their USA bound traffic.
How about the hubs themselves? Both airlines define the viability of their hubs in the long run and while the airports themselves show traffic increasing YoY, will both hubs be able to weather the storm and remain hubs in the future? Both airports serve cities of small populations but large populations nearby (ASEAN for SIN and China for HKG).
Just wanted to get peoples' 2 cents on this. Cheers!
Moderators: richierich, ua900, PanAm_DC10, hOMSaR
Re: Battle of the Hubs: SIN and HKG
IMO, intra-Asian traffic at SIN and HKG will soon predominate over TPAC and other intercontinental traffic. SIN and HKG don't have the O&D catchment to remain major connecting hubs in the face of the CN carriers, the ME3, and LCCs serving Asian destinations directly. CAN's growth has come at HKG's (and CX's) expense. In a way... it's the final knell for those former British colonies as Tier 1 players in aviation. The former colonies will be relegated to roles proportional to their O&D catchment; harbors are different, so their importance in shipping shouldn't decline as rapidly.
Re: Battle of the Hubs: SIN and HKG
WPvsMW wrote:IMO, intra-Asian traffic at SIN and HKG will soon predominate over TPAC and other intercontinental traffic. SIN and HKG don't have the O&D catchment to remain major connecting hubs in the face of the CN carriers, the ME3, and LCCs serving Asian destinations directly. CAN's growth has come at HKG's (and CX's) expense. In a way... it's the final knell for those former British colonies as Tier 1 players in aviation. The former colonies will be relegated to roles proportional to their O&D catchment; harbors are different, so their importance in shipping shouldn't decline as rapidly.
Has anyone hit stats on intra Asia traffic. Certainly an interesting viewpoint which I can see logic of. I know personally when I lived in China I used both hkg and sin for going to Indonesia and other points. Challenge for SIN is so far south that makes not as much sense as for example BKK. For HKG great point for their Taiwan Japan and Korean customers especially with Dragonair.
Unfortunately for both the Chinese carriers jumped on the Australia NZ market so not much opportunity to pick up the loss Europe ANz trade. SIN still has good traffic ex India given the distance the stop still makes sense as little direct flights.
Re: Battle of the Hubs: SIN and HKG
SIN has an advantage that HKG doesn't which is a lack of viable competition in the ASEAN region which is an area of about 600 million people, while HKG faces direct competition not just from other hubs in the region but from p-2-p routes being started by Chinese carriers that bypass HKG all together. Having said that, Southeast China is such a huge market and Honk Kong such an important business center, that it's viability and importance will always be relevant.
Re: Battle of the Hubs: SIN and HKG
airbazar wrote:SIN has an advantage that HKG doesn't which is a lack of viable competition in the ASEAN region which is an area of about 600 million people, while HKG faces direct competition not just from other hubs in the region but from p-2-p routes being started by Chinese carriers that bypass HKG all together. Having said that, Southeast China is such a huge market and Honk Kong such an important business center, that it's viability and importance will always be relevant.
The hub itself (referring to HKG specifically) will of course always remain relevant, but what will shape it (and SIN) is how the fortress carrier deals with the pressures that have been brought up in this thread. CX's financial results this week were, to be frank, abysmal, and how they pivot going forward (especially since it doesn't yet appear as though their restructuring is working) will in many ways shape the airport and its network and even facilities down the road. SQ is actively taking the low cost plunge albeit via subsidiaries, and it's likely at this point that CX needs to start quickly executing a similar strategy.
Re: Battle of the Hubs: SIN and HKG
A possible scenario: HKG becomes the LCC hub of Asia... by reduced landing fees, just to keep the lights on. It's better placed as an intra-Asian pivot than SIN is. HKG has a large infrastructure that could become a movie set unless Plan B works, Plan A being ignoring the disintermediation of HKG for intercontinental routes by (i) P2P routes and (ii) growth of PEK, CAN, PVG, ICN, and KUL for connections to/from cities without P2P service.
Putting aside free-market dynamics, there's the added dimension of the Northern Capital playing favorites.
Putting aside free-market dynamics, there's the added dimension of the Northern Capital playing favorites.
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- zakuivcustom
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Re: Battle of the Hubs: SIN and HKG
A possible scenario: HKG becomes the LCC hub of Asia... by reduced landing fees, just to keep the lights on. It's better placed as an intra-Asian pivot than SIN is. HKG has a large infrastructure that could become a movie set unless Plan B works, Plan A being ignoring the disintermediation of HKG for intercontinental routes.
Really?
YoY traffic keep increasing, the airport is busy enough that a 3rd runway is in the talk, and you need LCCs just to "keep the lights on"?
Seriously, HKG has tons of O&D as-is and it's certainly not going to become a CVG or MEM or STL (The population of HKG alone is almost as much as those three MSAs combined, BTW).
Re: Battle of the Hubs: SIN and HKG
Had a look at some stats and these 2 articles help with some great background
Singapore growth - importance of China!
https://centreforaviation.com/insights/ ... wth-329264
Analysis of Inchein airport and difficulty of growing transit market.
https://centreforaviation.com/insights/ ... 030-274544
Singapore growth - importance of China!
https://centreforaviation.com/insights/ ... wth-329264
Analysis of Inchein airport and difficulty of growing transit market.
https://centreforaviation.com/insights/ ... 030-274544
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