Advertisement
Advertisement
Hong Kong economy
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
British Airways is also looking to invest in machine learning, automation and artificial intelligence to augment its operations. Photo: AFP

British Airways vows to re-establish presence in Hong Kong and other Asian markets as part of £7 billion transformation plan

  • British Airways to also reinstate direct flights to two key Asian destinations, Bangkok and Kuala Lumpur, as it presses ahead with its largest transformation plan yet
  • ‘Asia is very important to us, and we’ll be looking to rebuild, back to and beyond what we used to have,’ airline CEO Sean Doyle says
British Airways aims to re-establish its presence in Asian markets such as Hong Kong, mainland China and Japan in the coming years with new aircraft and enhanced services as part of the carrier’s £7 billion (HK$69.5 billion) transformation plan, the largest in its history.

The airline also revealed on Monday night at an event in London that direct flights between the UK’s capital and two key Asian destinations, Bangkok and Kuala Lumpur, would be respectively reinstated in October and November.

As of last December, British Airways was operating at 90.1 per cent of its 2019 capacity, partly as a result of the carrier’s decision to retire its jumbo jet fleet of Boeing 747-400s during the Covid-19 pandemic.

China, US flights to rise to a third of pre-pandemic levels

Sean Doyle, the company’s CEO and chairman, said the carrier planned to use the mega-investment push to bring in new aircraft, boost capacity and up its game as a premium carrier.

“I’m gonna take a lot of long-haul planes over the next three years. It gives us the ability to look at expansion into China and other markets in the Far East,” he told the Post on the sidelines of the event showcasing the new British Airways initiatives.

“Asia is very important to us, and we’ll be looking to rebuild, back to and beyond what we used to have.”

Some markets in Asia such as Hong Kong, the mainland and Macau are still catching up in terms of recovery after opting to lift pandemic travel restrictions last year.

British Airways resumed services from London to Shanghai and Beijing last summer. It currently runs two daily flights between London and Hong Kong, another one with Shanghai and four a week with Beijing.

British Airways has announced an array of new initiatives to transform the airline following the Covid-19 pandemic. Photo: Handout

The carrier said it planned to double the number of cabin crew based in Shanghai and Beijing, in addition to increasing the number of Mandarin-speaking cabin crew from two to four for China-London routes.

Doyle said up to 75 per cent of the investment drive was budgeted for buying aircraft and the rest on about 600 modernisation initiatives and facilities, such as lounges and new cabins.

He said 15 new, fuel-efficient planes for short and long-haul routes were due for delivery this year. They would consume 20 to 40 per cent less fuel, boosting the airline’s profitability and lowering its carbon emissions, he added.

The fleet will bring in eight new aircraft from Europe’s Airbus, comprising the A320neo and A321neos models, that will be delivered from May, feature redesigned cabins and be used for short-haul routes.

On the modernisation front, about 10 per cent of the total investment, or £750 million, will be earmarked for innovation and technology development.

The airline plans to invest in machine learning, automation and artificial intelligence (AI) systems for use in operations, bookings, baggage handling and flight disruptions.

Doyle said AI would be deployed to reduce service delays and more effectively analyse real-time weather, aircraft capacity and customer data.

British Airways has announced it will offer in-flight Wi-fi to members of its executive club loyalty programme from April 3. Photo: Handout

The transformation plan will also focus on augmenting customer experiences and building on the company’s brand, with plans ranging from a new menu to revamped first-class suites.

The changes include allowing passengers who are part of the British Airways Executive Club loyalty programme to be able to send messages for free on a single device using in-flight Wi-fi from April 3.

The company will also revamp its website and app to include new services such as allowing customers to self-serve and take control of making changes to their journeys online, rather than having to call its customer services hotline.

The upgrade is expected to be rolled out by the end of this year.

The airline will also launch a new lounge in Dubai, as well as refurbish facilities in Lagos, Seattle, London Heathrow and Edinburgh.

A British Airways spokeswoman said 60 per cent of the company’s aircraft had been retrofitted with the Club Suite layout for business class, the equivalent of “a private room”, that was unveiled in 2020 and offered travellers more privacy.

“Hong Kong is a major financial hub for business travellers and was one of the first long-haul routes where we launched the Club Suite,” she said.

Driven by C919 and Airbus, China’s aviation sector opens up for S Korean firms

British Airways is among a raft of premium airlines raising its game and looking to attract business-class travellers.

Senior lecturer Andrew Yuen Chi-lok of Chinese University’s aviation research centre said that because of intense competition from regional and low-cost carriers, premium airlines in Asia were forced to fortify their position in the long-haul cross-continental markets.

“Therefore, beyond price competition, enhancing passengers’ flying experience is imperative for airlines to uphold their competitiveness,” he said.

“Another pivotal trend in the industry is the escalating demand for sustainable aviation, prompting airlines to expedite the acquisition of new, environmentally friendly aircraft.”

Hong Kong flag carrier Cathay Pacific Airways has said it plans to roll out a new business class cabin, dubbed “Aria”, in the second quarter of this year. A new first class cabin is also set to debut in 2025.

Cathay also placed orders for HK$57 billion (US$7.28 billion) worth of Airbus aircraft between September and December last year to boost its capacity for post-pandemic travel recovery.

British Airways was ranked the world’s top 18th airline in 2023, according to Skytrax’s World Airline Awards, slipping from 11th place in 2022 and 2021.

Cathay was ranked eighth in 2023, up from 16th in 2022.

British Airways’ operating profit before exceptional items jumped almost five-fold to £1.43 billion last year, up from £306 million in 2022.

12